The research conducted by the Florida Atlantic University researchers shows that many residents are struggling with their finances as the rent rates have increased by around 4% this year; therefore, the high demand sparked by people migrating and the low supply of housing, and core inflation leaves strain on the average Florida resident’s wallet.
Rent Increase Rate in Florida (Photo: Red Fin)
Rents Nationwide Increased Rates
According to the study the researchers, Out of the nine measured cities in Florida, only eight saw the yearly rate increase below average.
In the same study, 4.11% of the rent rates increased in June year-over-year, while rents in metros across Florida have seen below the said percent exempting Cape Coral with 7.73%.
Those rates are as follows.
- Orlando – 2.33%
- Jacksonville – 2.43%%
- Tampa – 3.11%
- Miami – 3.38%
- North Port – 3.66%
- Deltona – 3.91%
- Palm Bay – 4.11%
- Cape Coral – 7.73%
By the following rates, Cape Coral was the only metro in Florida that increased above the national average yearly. In which the real estate economist Dr. Ken Johnson, a member of the Real Estate Initiative at Florida Atlantic Univerity, stated that rents did not become affordable as rents are still high in some areas of Florida. He also mentioned that the state is out of the rental crisis into affordability, where renters have to face increasing rental costs and incomes that aren’t rising to meet the expenses of the rents.
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Additionally, the study shows that five areas have the highest yearly rental increases in the country in the following areas:
- Knoxville, Tennessee – 7.21%
- Wichita, Kansas – 7.30%
- Springfield, Massachusetts – 7.68%
- Charleston, South Carolina – 8.16%
- Madison, Wisconsin – 10.42%
Madison, Wisconsin, got the most increased rent rates yearly in the following rates.
However, researchers stated that there will come a time when the number of units will grow to meet the number of people needing homes. Dr. Bernie Waller of the University of Alabama noted that the supply lags significantly behind the demand in countries where rent increases yearly. It takes time to put units into the ground as, in time, rents may come into line as supply and demand may come into balance. Nevertheless, the affordability issue may still be present.
Finally, all the researchers have compromised that the rental crisis is slowly changing into a prolonged housing affordability problem, in which more units on the market and increasing salaries can be solved.
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