It’s become clear to most Florida renters that rent prices are, well, really high.
To a typical big city dweller, paying premiums on rent isn’t a thing of new. Paying close a few grand a month for a small apartment is the way some people like to roll, especially the younger crowds that like to be close to where things are happening.
But what about middle class families, struggling to get by?
Gross rents in Florida have increased by over 11% pretty steadily for the last few years, compared to the US average of only a 7% increase.
Since 2005, Florida’s average rent has increased a few hundred dollars for the same exact home.
That is just speaking in averages, but many local residents are well aware rents have almost doubled in some areas.
In our office alone, rents for some properties we’ve had since the early 2000’s have almost doubled in price.
Grey Line- US Average Green Line- FL Median Blue Line- FL Average
Why did this happen?
There’s several attributes that have led to the increase in price, two main ones that are worth mentioning.
Residents of Florida know it as almost a joke that “everyone in the world has moved to Florida, you should too!” Many of our cities are almost unrecognizable from what they were just 15-20 years ago as local populations have exploded. Additional restaurants and shopping have been seen sprouting up all over, and the city of Cape Coral has even rezoned much of its residential land to commercial to accommodate for the additional population. We’ve also witnessed road widening in many Southern cities to help alleviate the now intense traffic.
So, this is simply a supply and demand issue. Our office alone receives over 20 rental leads a day, and folks are eager to grab what they can as there isn’t a whole lot to pick from as properties quickly get gobbled up.
So, simple economic supply and demand are at play here. Inventory of rentals goes down, price goes up!
The second main factor is the ability to obtain a mortgage. In the depression of 2007, most families lost their homes as we all know. Florida was one of the hardest hit, and led the nation in foreclosures. Getting a mortgage simply wasn’t possible, so renting became the norm.
Where are we now?
Rent prices seem to still be on a climb of about 10-13% per year, and folks seem to just be dealing with it. Living in South Florida has many perks with lower than average crime, good charter schools, and more and more higher paying jobs available. Those who qualify have taken to building or buying their homes and are hoping to leave the renting life for good.
Only time will tell, but for now, one thing is certain: rents are very, very high!
For all things real estate, keep it here at Douglas!