Many Central Florida residents are still struggling with their finances as inflationary pressures continue to take their toll on the economy.
Between high demand sparked by people migrating to Florida, a lower supply of housing in the state and core inflation brought on by federal government spending, there’s a lot of strain on the average Florida resident’s wallet.
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A study by researchers at Florida Atlantic University, however, found that eight out of nine major Florida cities saw yearly rent increases at or below the national average.
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The study shows that rents nationwide have increased by around 4.11% year-over-year in June, while many metro cities across Florida have seen lower rates. Those rates are as follows:
- Cape Coral — 7.73%
- Palm Bay — 4.11%
- Deltona — 3.91%
- North Port — 3.66%
- Miami — 3.38%
- Tampa — 3.11%
- Lakeland — 2.52%
- Jacksonville — 2.43%
- Orlando — 2.33%
“This doesn’t mean that rents have become affordable, as rents are still high in these areas. They just aren’t expanding as rapidly as before,” real estate economist Dr. Ken Johnson said. “The state is easing out of a rental crisis and into an affordability crisis where renters are faced with increasing costs and incomes that aren’t rising to meet those costs.”
According to researchers, the rising prices could eventually hit a boiling point.
“It’s taking longer than it needs to build in Florida, and we are still exposed to the scenario where apartment rates could take off again if we don’t start building fast enough,” Dr. Shelton Weeks of Florida Gulf Coast University said. “It’s also possible that some people will leave the area as the cost of living is getting too high.”
The study shows that the highest yearly rental increases in the country were found in the following areas:
- Madison, Wisconsin — 10.42%
- Charleston, South Carolina — 8.16%
- Springfield, Massachusetts — 7.68%
- Wichita, Kansas — 7.30%
- Knoxville, Tennessee — 7.21%
On the bright side, researchers said that the markets should stabilize in the future as the number of units grows to meet the number of people in need of homes.
“In the areas of the country where year-over-year rent increases are the highest, supply continues to significantly lag demand,” said Dr. Bernie Waller, of the University of Alabama. “It takes time to put turnkey units into the ground. In time, rents will come into line as supply and demand come into balance. However, the affordability issue will still be there.”
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