With home prices garnering most of the attention over the past few years, it should also be noted that rental prices have also been skyrocketing. In fact, monthly rental prices across the country saw double-digit increases for almost an entire year. However, just like home prices have cooled off, so have rental prices. The month of November marked the third consecutive month of single-digit rental price increases. The median U.S. asking rent climbed 7.4% year-over -year to $2,007 in November. This marks the smallest increase in 15 months and the sixth-consecutive month in which annual rent growth slowed.
Florida metro markets: year-to-year changes in asking rents
| City | Median Rental Price | % Year-to-Year Change |
| Miami | $3,268 | up 9.2% |
| Orlando | $2,084 | up 3.1% |
| Tampa | $2,100 | up 1.7% |
| Jacksonville | $1,582 | down 1.8% |
Summary
As we look ahead to 2023, it is largely expected that the slowdown in rental prices will continue. Of course, certain markets such as South Florida continue to see increased demand for rentals which is keeping prices growing, albeit at a slower rate. Moving forward, it is quite possible to see some rental prices decrease in certain markets across the country. In turn, this should also help combat the inflationary pressures currently impacting the economy. Assuming we can bring down inflation in the new year, we should be able to see some relief with mortgage interest rates as well. If so, this will result in more buyers entering the housing market.
Do you have questions about the South Florida real estate market? We can help! Contact Natasha at Live South Florida Realty, Inc. today! In addition, arm yourself with the most up-to-date MLS data for South Florida by downloading the Florida Home Search app!
