Florida is at the top of the list for rising home and apartment rental prices, a spike triggered by inflation and migration of citizens from other states.
A study by Florida Atlantic University (FAU) has identified the 25 most overpriced rental markets in the United States, a list whose first five places are occupied by cities and urban areas in the so-called “Sunshine State.”
According to this study, renters in the urban area of Miami-Dade, Broward and Palm Beach counties, in the southeastern part of the state, pay an average of $2,832 per month, which is 21.75% more than what they should be paying, according to the area’s long-term leasing trends.
This geographic area, at the top of the list, is followed by Fort Myers in Southwest Florida, with an average monthly rent of $2,052 per month, or 18.16% above the long-term leasing trend for the area.
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Tampa, with a 17.08% increase; the Sarasota-Bradenton area, with a 16.98% increase; and Port St. Lucie (15.61% higher), round out the top five on the national list.
Following them in sixth place is Killeen, Texas, with a 15.46% increase and the first city outside of Florida.
The authors of the study, which also involved researchers from Florida Gulf Coast University and the University of Alabama, point out that Florida has seen a significant increase in rental demand due to moves by new residents from out of state.
But at the same time, developers have had trouble building more units because of supply chain shortages and rising material costs, as an FAU statement captures.
“Florida is a popular destination under normal circumstances, and it’s even more desirable now because its pandemic policies strongly favored consumers and businesses,” said Ken. H. Johnson, an economist at FAU’s College of Business.
Experts say higher rent prices will persist until inflation is under control and enough units are built.