The cost to rent a home or apartment in the US has risen a jaw-dropping 350% since the 1980s. Some of the most aggressive increases have been in recent years. A new report by Bloomberg reveals that around the country, rents rose 15% on average between May 2021 and May 2022 alone.
Rental increases are happening everywhere, and Florida's big cities are no exception. In fact, they are leading the charge in terms of rental increases. A Redfin report shows that three of the markets in which rent has increased most substantially are in The Sunshine State.
Which Florida cities are most affected?
Rental increases in Miami are by far the most aggressive across the country, with a 45% increase between May 2021 and May 2022. The median rent in Miami is now $2,843/month.
Orlando has experienced the second-highest rental increase in the country, at 28.4% in the same time period between May 2021 and May 2022. Orlando's median rent is now $1,955/month.
Tampa is in fifth place in terms of highest rental increases across the country. In the same year, Tampa renters experienced an average 22.4% increase, with a median rent of $2,093/month.
Renters are traditionally younger people with a lower median income. These increases far outpace the rate at which most employees experience raises or even cost of living increases.
Why are these increases happening?
There are a few reasons for rental increases. As remote work becomes more common, some employees who used to have to stay close to their office are free to move to the "Sun Belt" to experience milder climates and coastal waters. The popularity of Airbnb properties in desirable vacation spots is also an important consideration. In addition, institutional investors are driving up costs by purchasing large numbers of properties as assets.
The United States is also experiencing a general shortage of housing, which typically affects cities and suburbs more than smaller areas. Where demand is high, prices climb.
Residents of Florida's biggest cities will continue to pay the price for their area's natural beauty and popularity, which may drive new social trends such as a renewed focus on multi-generational homes and young people living in larger groups to be able to make rent.
Meanwhile, Florida residents are increasingly calling for rent control measures to be put in place, while interested parties fight the legislation.
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