Average rent in Florida is above the market

Average rent in Florida is above the market

A study by Professor Ken Johnson from the Florida Atlantic University and researchers from other universities showed that the average rent in the Fort Myers region ($2,186.47 in August 2022) and Sarasota ($2,409.21) exceeds the market price by a higher margin than in all other parts across the USA.

In Fort Myers, the premium was 17.59% (the second in the country after Miami); for Sarasota, 14.08% (the eight in the country). The annual rent in Fort Myers grew by 21.6%, which is the second highest in the USA. In Sarasota, this indicator was 15.71% (11th place).

Economists forecast a further growth of residential property prices over the next few weeks, as the number of listed homes in the market remains generally small. This data became available a few months after Miami, the seventh US metropolitan area by population, became the least affordable location in the country relative to residents’ salaries. The cost of rental homes here has surged to almost $3,000 per month.

This amount has almost exceeded the rates in such famously expensive cities as New York and San Francisco, where rentals are also on the rise. The rent in some other quickly developing Florida cities, such as Tampa and Orlando, is also increasing. Local tenants have to spend over 45% and 37% of their monthly income (pre-tax) respectively to pay for their rental homes.

Researchers expect Hurricane Ian to have a short-term impact on rent. The areas affected by the natural disaster don’t have enough leased housing as it is, and the destruction caused by the hurricane will only slow down the badly-needed construction of new properties. This will most probably cause a hike in rents, even if temporary.

In the long term, people from other states and countries will still want to live in Florida or come here on vacations, which will significantly increase the demand for both purchase and rent of housing.

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