Renters paying more than they should have to
A recent survey of 107 rental markets across the United States, reported on July 6, has revealed what many of Florida's renters already knew - rents in Florida are overvalued. And the problem seems to be at crisis point in Florida where 10 of the 14 most-overvalued rental markets in the entire U.S. are to be found.
The news comes less than a month after data from the same survey of property prices and home ownership conducted by Florida Atlantic University found that in cities like Tampa, properties could be overvalued by as much as 52.4%.
Increased demand is pushing up rents
One of the reasons behind rents going up so significantly is the heightened demand for homes and apartments in Florida.
Significant numbers of Americans are moving to the state from elsewhere in the country, drawn by the favorable tax system, great weather and all the other good things that the state has to offer. 220,890 Americans reportedly moved to Florida in 2021 alone and this seems to have pushed up demand for property.
Homeowners have been able to command higher prices from buyers, and with a lack of rent control, landlords have been able to push up rents and still find renters who are willing to pay. It has of course also pushed many renters towards homelessness and forced many others to move in with friends and family as a way of keeping a roof over their heads.
South Florida most overvalued
The survey found that the most overvalued rental market was in the Miami market, including Miami-Dade, Broward and Palm Beach counties. Rents in that market were found to be overvalued by 22.07%.
Meanwhile, the greatest year-on-year increase in rent was discovered to be in the Fort Myers area where rents had gone up by an average of 32.38% in 12 months. All Floridian markets in the survey had shown increases of over 20% in the last 12 months, putting all Florida markets in the top 15 of all U.S. markets surveyed.
Will state leaders address the issue?
While the population growth and the increase in property values are seen as signs of a growing economy, it's undeniable that many Floridians are struggling due to the increasing cost of property in the state. Democrat and gubernatorial election challenger Nikki Fried has declared on TV that "Floridians can't afford Florida anymore".
In early April, Fried stated that if elected governor, her first action on day one would be to declare a state of emergency in regard to the housing situation. She would introduce rent control, property tax breaks for owner-occupiers and better protection of the Sadowski fund intended to create affordable housing.
Even if she were to beat Governor Ron DeSantis and be elected as governor in November, such actions are still a long way off when renters are feeling the pain of inflated rents right now.
Do you think the state's leaders should be taking action to bring rents under control or is this just a matter of economics determining market value? Have you been affected by rising rents? Let me know in the comments section below.