Florida rentals have been growing faster than the national average for three years. One of the reasons is the population inflow to this southern state, driving up the demand and reducing the supply in the market, experts say.
For instance Ken Johnson, Associate Dean of Graduate Programs at the Florida Atlantic University, estimates that tenants in Cape Coral—Fort Myers metropolitan area currently pay 18% more than could have been expected based on the long-term trends in the Waller, Weeks, and Johnson Rental Index. This weighed index reflects historical rental trends in a certain area.
For example, the average rent in Cape Coral currently exceeds $2,200 per month, while a “fair” market price, according to the Index, should have been about $1,880.
The rent in Panama City Beach has grown by 5.6% over the last 12 months alone and now exceeds $1,830 per month. Single-family houses cost their tenants approximately $2,800 per month.
This situation is partially caused by the great number of properties on short-term lease. There are more than 11,800 of these in Panama City Beach (according to Airbnb), and the average rate is $256 per night. Meanwhile, the total housing stock in this city is only 17,000 units, according to calculations by the Point2Homes platform.
In many cases, it is more lucrative for homeowners to lease their property in the short term on websites such as Vrbo and Airbnb, as this generates a higher yield. For this reason, it is becoming difficult for locals to find long-term rentals.