Construction volumes in the USA are generally declining because of the interest rates growth. This is why the share of rental apartments completed in Q1 2023 was only 0.4% – 40 basis points less than a year ago. For instance, no residential properties at all were commissioned in Harrisburg, Broward County, Florida, over this period.
Development is the most active in Miami-Dade County: 1.2% of local rental apartments have been built over the first quarter of the current year. This, however, has not satisfied the roaring demand: the occupancy rate of Miami rental homes reaches 97.1%, which is 290 basis points above the US average.
In 2012-2021, several hundred thousand new rental residences were built in Florida, but almost 277,000 such apartments with rents under $1,000 per month left the market, according to the Florida University. This put a lot of pressure on many low-income Floridians: a 2021 report showed that more than a half of tenants in this state pay over 30% of their income to the landlord.
The Florida Legislature is trying to solve the problem of housing shortage by prohibiting local communities to introduce a rental cap. Until recently, such measures could be adopted for one year in case of an emergency and pending voters’ approval, but a bill considered by the Legislature at the current session will render rent control illegal. Homeowners will be able to raise the rent at their discretion.