Across the country, we have seen more prospective home buyers priced out of the housing market. Needless to say, this has led to even more demand for rental housing. With more Americans continuing to relocate to Florida, the impact on rental housing demand has been even more pronounced. As high inflation continues to impact all aspects of life, it certainly appears that rental prices are not immune.
A surge in rental prices
According to a Freddie Mac survey of 2,000 Americans conducted in June and given exclusively to Yahoo Money, nearly 60% of renters stated that their rent increased in the past 12 months. The survey, which included 2,000 American participants and was conducted in June 2022, found that an estimated third of those who participated reported at least a 10% increase in rent. This has led to approximately three in five households becoming more worried about being able to afford their rent in the last 12 months. One of five households reported that they will likely miss at least one rent payment in the coming 12 months.
According to a June REALTOR®.com report, the national median rent rose to $1,876 per month. This is a new record for the 16th consecutive month. When looking at the average rent growth year-over-year, this put the month of June at +14.1%. Interestingly, this is the lowest year-over-year growth rate seen this year.
According to this survey, outside of housing, 66% of participants say they are spending more on groceries, 54% on transportation, 51% on eating out, and 49% on utilities. Of course, this unfortunately results in a vicious cycle for renters as it prevents them from saving enough money to purchase a home. Nonetheless, in 38 of the 50 largest US metros, the monthly cost of renting a home is lower than buying a starter home, and renting has become relatively more affordable year-over-year.
Do you have questions about the South Florida real estate market? Whether it is the rental or home purchase market, we can help. Contact the Live South Florida Realty, Inc. team today! While you are at it, be sure to download the free Florida Home Search App as well.