Florida has quickly become the epicenter of America's housing crisis, according to CBS News. "Average monthly rents in the Miami metro area are on par with San Francisco and Los Angeles — and double the level considered affordable for people in the region given local incomes." It's also worth mentioning that Tampa Bay home prices have risen the fastest rate of any city in the country, according to a national index.
Florida recently saw high demand combined with low real-estate inventory, causing prices to increase. According to CNN, "the rush of new residents has exacerbated the housing crunch, helping push home prices to levels not seen since before the Great Recession and leading rents to surge by 20% to 50% in many parts of the state."
Sadly, some residents are being displaced as they cannot cope with the rising cost of living. "These large rent increases are what's going to push people into doubling up (bringing multiple family generations under one roof) or homelessness," said Anne Ray from the Shimberg Center for Housing Studies.
Stijn Van Nieuwerburgh, a professor at Columbia Business School, agrees that Florida is quickly becoming unaffordable for many residents. "Rents are exploding at a pace far faster than income," he said. "The problem is now as bad as it has ever been. And probably much worse."
To combat the rising cost of rent, Florida Senator Randolph Bracy recently introduced a proposal to cap rent increases at 3% during a 12-month period. "Housing is in a state of emergency," he said. "The sticker price for many Orlando renters who are getting ready to renew their lease is incredibly shocking and continues skyrocketing to new heights. If we do not act now, then more aggressive price increases will occur, hardworking people will suffer, and Florida will be less well off."
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