Why is the price of rent skyrocketing in Florida?

On Behalf of | Feb 25, 2022 | residential real estate | 0 comments

If you are not yet ready to purchase your own home, you may be at the whim of Florida’s many landlords. Whether your landlord is a private person or a multi-state company, you have undoubtedly seen a sharp increase in your monthly rent.

In fact, according to reporting from WESH 12, the NBC affiliate in Orlando, rents in Florida have increased more than in anywhere else in the country over the last year. On average, renters are paying nearly 30% more than they were just one year ago.

Landlords have broad flexibility

The red hot housing market is the primary cause of rent hikes in the Sunshine State and elsewhere. As homes become increasingly unaffordable, many Floridians have little choice but to rent for a couple of reasons.

First, rising house prices make it more difficult to secure a mortgage. Furthermore, because a greater number of individuals have no choice but to rent, landlords enjoy broad flexibility to increase rent. That is, regardless of how much they charge, landlords are confident they can find renters who are willing to pay.

Rental properties are scarce

While homebuyers typically expect to face fierce competition, renters have traditionally been able to find properties. That may no longer be the case, as demand is exceeding supply. Regrettably, for rents to moderate or decrease, demand must go down or supply must come up. Building new rental properties takes time, though.

Until more rental properties are available or the housing market cools, you may continue to see annual rent hikes. Ultimately, negotiating a long-term lease may help to keep your living expenses within your budget.