The current environment of high inflation and economic uncertainty is prompting many renters to stay put across the country. In most markets, this is leading to a stabilization or even a slight decrease in rental prices. Of course, not all markets are created equal. Like with most things in real estate, The Sunshine State is not like most states.
Year-over-year rental prices
Although several major metro markets including Atlanta, Minneapolis, and Austin saw year-over-year rental prices drop, the same can not be said for Florida’s major metro markets. In fact, Miami had the largest year-over-year rental price increase of 8.5%. For perspective, the national average was 7.8% As for the list of Florida metro markets included in this analysis, their results were as follows:
- Miami, FL: +8.5%
- Tampa, FL: +3.0%
- Orlando, FL: +2.2%
- Jacksonville, FL: +1.7%
Although recent data may indicate that inflation may be easing slightly, it will likely be a while before renters feel relief given the fact that rental prices are still up more than wages. Specifically looking at the ten largest cities in Florida, we have seen rental prices rise year-over-year in 90% of them. Given the steady number of Americans relocating to The Sunshine State, this is not unexpected. Of course, with wages not keeping up with rental prices, this makes it much more challenging for renters to save for a home purchase. It is for this reason that we feel the South Florida rental market will remain strong for the foreseeable future. Are you ready to build your real estate investment portfolio? Let our real estate investment experts assist you. Contact Natasha at Live South Florida Realty, Inc. today! While you’re at it, be sure to download the free Florida Home Search app for your smartphone or tablet.