Are Florida’s Rent Costs Going Down?
A recent report from Rent.com show that rent prices in Florida have declined year over year for the first time since 2018. According to the data, rent prices declined 9.21% year over year. This is the largest percentage drop in the whole country but what’s behind it?
Its no secret the Florida has been one of top states to benefit for the influx of demand sparked by pandemic aftermath, cheap money, and a swath of new people relocating to the sunshine state. Florida saw home prices and rent prices rise to dizzying heights in the last 4 years and saw some of the largest increases in the nation. “According to a 2022 study of 107 rental markets in the United States, 10 of the 14 most overvalued markets were in Florida”
Finally, residents are getting some relief from the madness with rental prices beginning to soften and come down to earth. The drop in rental prices, according to the article, is due mainly to more rentals being constructed and a higher supply of exiting rentals forcing landlords to lower prices to stay competitive.
Although rent prices are decreasing they are still some of the highest in the nation with a median rent of $2,095 compared to $1964/m. Rents are expected to continue to soften due to more rental units coming available but the main key drivers of the states growth and price rises remain intact and show no signs of dissipating in the foreseeable future.
In summary, Florida remains one of the biggest beneficiaries of the post pandemic boom but with higher rates working their way through the economy we are finally seeing some relief for perspective renters.
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Credit: FloridaRealtors
Source: Florida Times Union
