Florida Cities Mentioned in List of Overvalued U.S. Rental Markets

L. Cane

Rental rates have gone up all over the United States, but many Floridians have felt that Florida rent increases have been particularly severe. A new study from Florida Atlantic University confirms what many Floridians already knew - that many places in Florida fall at the top of the rental price surge.

In order to determine the 25 most overvalued rent markets, FAU used leasing data from Zillow's Observed Rent Index (ZORI) to model rental trends compared with current rents.

How Did Florida Fare?:

Florida cities made up the top 5 markets on a list of 25 overvalued real estate markets, with Miami-Ft. Lauderdale coming in first, and Ft. Myers coming in second. Florida also had 10 markets on the overall list.

In its report, FAU speculated that rents may have increased so much in Florida because of out-of-state transplants who moved during the pandemic. Supply chain shortages and rising costs of materials have also slowed new development. As a result, demand has outpaced supply.

Ken. H. Johnson, Ph.D., an economist in FAU’s College of Business, said in the study's report:

“Florida is a popular destination under normal circumstances, and it’s even more desirable now because its pandemic policies strongly favored consumers and businesses. Landlords can charge exorbitant rents because if the existing tenants do not accept the new lease terms, other people will accept them quickly. This all points back to a persistent inventory shortage in rental units.”

The List:

Here is FAU's list of the 25 most overvalued rent markets. The first number is the current average rental price, and the last figure is the premium being paid.

1 Miami-Fort Lauderdale, FL, average rental price: $2,832.00, premium: 21.75%

2 Fort Myers, FL, average rental price: $2,052.00, premium: 18.16%

3 Tampa, FL, average rental price: $2,029.00, premium: 17.08%

4 North Port-Sarasota-Bradenton, FL, average rental price: $2,402.00, premium: 16.98%

5 Port St. Lucie, FL, average rental price: $2,201.00, premium: 15.61%

6 Killeen, TX, average rental price $1,322.00, premium: 15.46%

7 Bakersfield, CA, average rental price: $1,688.00, premium: 14.52%

8 Lakeland, FL, average rental price: $1,808.00, premium 14.46%

9 Phoenix, AZ, average rental price: $1,921.00, premium 14.42%

10 Knoxville, TN, average rental price: $1,526.00, premium: 14.33%

11 Tucson, AZ, average rental price: $1,585.00, premium: 14.07%

12 Daytona Beach, FL, average rental price $1,766.00, premium: 13.58%

13 Jacksonville, FL, average rental price: $1,724.00, premium: 13.36%

14 Albuquerque, NM, average rental price: $1,435.00, premium: 13.19%

15 New Orleans, LA, average rental price: $1,517.00, premium: 13.15%

16 Orlando, FL, average rental price: $1,951.00, premium: 13.06%

17 Las Vegas, NV, average rental price: $1,828.00, premium: 13.02%

18 Riverside, CA, average rental price: $2,561.00, premium: 12.62%

19 Melbourne, FL, average rental price: $1,850.00, premium: 12.45%

20 Allentown, PA, average rental price: $1,770.00, premium: $12.15%

21 Greensboro, NC, average rental price: $1,424.00, premium: 12.08%

22 Austin, TX, average rental price: $1,808.00, premium: 11.53%

23 Memphis, TN $ 1,496.00, average rental price: $1,344.14, premium: 11.30%

24 Augusta, GA, average rental price: $1,326.00, premium: 11.08%

25 Boise City, ID, average rental price: $1,777.00, premium: 11.02%

Although advocates have pushed for rent control in Florida, many lawmakers feel that such a measure is not allowable under state law. Some places in Florida, like Dade County and Tampa, have proposed ordinances that require landlords to give prior notice for rent increases over 5 percent.

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