The purchase prices for homes over the last few years are not the only ones that have been rising. Rental prices have also steadily risen across the nation. However, according to a recent report, this is no longer the case. As of March 2023, asking rents fell by 0.4% to $1,937 year-over-year. This marks the lowest level for rental prices in 13 months. For perspective, this is the first annual decline in rental prices since the beginning of the pandemic in the U.S. in March 2020. In addition, it was just one year ago in March 2022 that national rental prices were up 17.5% year-over-year. Of course, not all markets are created equal. In The Sunshine State, we continue to see increasing demand from more Americans relocating to paradise.
Florida metro market rental prices
- Tampa: Up 3.9% to $2,222
- Orlando: Up 2.0% to $2,128
- Jacksonville: Up 1.7% to $1,633
- Miami: Up 0.7% to $3,074
Why are rents moderating?
There are several reasons for rents moderating year-over-year throughout the country. For starters, there is a surplus of housing in the mult-family sector from the pandemic home building boom. In addition, the overall rental market is cooling due to still-high rental costs, inflation, rising unemployment and recession fears. These factors are causing rental demand to ease. Furthermore, with rental vacancies on the rise, more landlords are being forced to reduce their prices.
Summary
With so much uncertainty and continued economic concerns across the broader economy, it is largely expected that home purchase and rental prices will likely stabilize or retract in many markets across the country. With this said, Florida continues to be an outlier in some regards. Due to the continued strong demand from American and international buyers relocating to The Sunshine State, it is expected that Florida will fare better than most of the rest of the country.
Are you looking to buy or sell property in South Florida? We can help. Contact Natasha at Live South Florida Realty, Inc. today! Also, don’t forget to download the free Florida Home Search app for your smartphone or tablet!
