According to a recent US rental growth report by Redfin, the median value of this indicator increased by 2.4% year-on-year nationwide, reaching $1,940 per month. The rent in Tampa, Florida, however, grew by 3.5% and exceeded the level of $2,000 per month. This trend is typical for the entire Florida, where rentals are higher than the national average and continue to rise.
In January 2023, rentals increased the least since May 2021, but housing affordability remains a grave issue. Daryl Fairweather, Chief Economist at Redfin, notes that the agency is carefully monitoring any signs of rent reduction, which would mean a considerable relief for tenants. The rentals have not reduced since the very beginning of the pandemic. If these rates drop year-on-year, tenants will be able to negotiate, and a greater number of homeowners might decide to sell their properties, as the return on investment would decline.
Rentals across the USA, however, are still 22.5% higher than in January 2020. Problems like inflation, the high cost of living, and the general economic uncertainty slow down household formation.
At the same time, a Florida market analysis conducted by Redfin showed that the highest asking rent in this state was recorded in Miami ($3,904 per month). Rents grew the fastest in Jacksonville, where they rose by 7.5% compared to last year. Tampa had average performance: the rent increased by 3.5% year-on-year, up to $2,197 per month.
According to the study of rental rates by the Florida Atlantic University, as of last December, rents in Florida’s largest real estate markets were at least 7% higher than the expected level.
Unlike some other markets, rentals in cities like Jacksonville, North Port, and Cape Coral are not reducing even relative to the previous month.