Rental rates in the Florida and across the U.S. have reached unprecedented highs, triggering concerns about housing affordability for many Florida residents.
While some areas have seen a slight decrease in rent hikes, the overall cost of renting remains a pressing issue across the Sunshine State.
A collaborative effort involving the Florida Atlantic University Real Estate Initiative, Florida Gulf Coast University’s Lucas Institute for Real Estate Development & Finance, and the Alabama Center of Real Estate at the University of Alabama, sheds some insigt into the evolving rental markets across the country,
Using past leasing data from Zillow’s Observed Rent Index (ZORI), statistical models have been employed to compare historical rent prices with current rates. This analysis reveals the percentage difference, termed as premium or discount, between projected and actual rental prices in each metropolitan area.
The data indicates that while rents are showing signs of moderation, the burden of high rent persists, raising questions about affordable housing.
To offer readers a gauge of affordability, a column labeled “House Poor” has been included. This metric identifies households spending 30% or more of their annual income on rent, a condition akin to being considered rent-burdened by HUD standards but excluding utilities. Such households may face challenges in saving and meeting other essential expenses like food, transportation, and healthcare.
The “House Poor” column showcases the minimum annual household income required to avoid this designation in each measured market. Households with incomes falling below this threshold are categorized as “house poor,” while those at or above it are not. This measure provides clarity on housing affordability, enabling households to assess their financial standing in respective metro areas.
The table below presents key rental market statistics for selected Florida cities:
| No. | City | Premium/Discount | Average Rent | Where Average Rent Should Be | Month Over Month Change | Year Over Year Change | House Poor |
|---|---|---|---|---|---|---|---|
| 1 | Cape Coral, FL | 3.92% | $2,191.89 | $2,109.24 | -0.44% | -1.36% | $87,676 |
| 2 | Deltona, FL | 1.33% | $1,893.23 | $1,868.46 | -0.09% | 2.53% | $75,729 |
| 3 | Jacksonville, FL | -0.44% | $1,710.06 | $1,717.54 | 0.06% | 0.26% | $68,403 |
| 4 | Lakeland, FL | 0.52% | $1,875.90 | $1,866.18 | 0.21% | 1.19% | $75,036 |
| 5 | Miami, FL | 5.40% | $2,715.19 | $2,576.03 | -0.09% | 2.40% | $108,608 |
| 6 | North Port, FL | 3.87% | $2,377.35 | $2,288.77 | 0.04% | 0.07% | $95,094 |
| 7 | Orlando, FL | 0.37% | $2,003.62 | $1,996.22 | 0.10% | 0.98% | $80,145 |
| 8 | Palm Bay, FL | 0.13% | $2,014.28 | $2,011.66 | 0.30% | 1.28% | $80,571 |
| 9 | Tampa, FL | 2.09% | $2,093.52 | $2,050.69 | -0.11% | 2.40% | $83,741 |