Residents in Florida pay too much for rent. That is if you are comparing the amount of rent they pay each month in comparison to their monthly income. A new study by Make Room found 30.3 percent of Floridians spend at least 50 percent of their monthly income on rent.
These numbers place Florida at the top of the list for the most “rent-burdened” state across the country. Rent in the Sunshine State even surpassed the rates being asked for in California and New York, which are known to be high rent states. According to the Make Room report, only 30 percent of residents in those two states spend half their income on rent.
Make Room researchers identified Florida’s rent issues as related to four main factors:
1) Exploding Population Growth
Florida rapidly growing population has propelled the state’s population to almost 20 million residents in 2014, according to U.S. Census Bureau figures released Thursday. This means Florida has now surpassed New York as the nation’s third largest state with an estimated population of 19.9 million, while New York is now fourth at 19.7 million third-largest state.
The high demand for places to rent will make rent rates climb, such is the case in Florida.
2) Rising Tourism
Florida has a strong tourist-driven economy, and an influx of residents from the North during the winter season. The warm, mild winters lure people from the Northern state as well as Canada, Finland, and other cold winter countries.
During the fall and winter, the demand for rental properties increases as does the rent rates. The state’s mild winters have made it a haven for retirees.
Sometimes these winter residents stay for just the season, while others may decide to make the balmy weathered state a permanent place to call home. This is especially true for retirees who’ve come, go, and stay at a very high rate.
3) Land Prices
As the population grows, so does the price of land. There are some places in the Sunshine State that are maxed out on the amount of land space, which makes them quite valuable and pricey.
4) Luxury Rentals
Because the state lures in top dollars from around the world, the construction industry targets the higher-end rental market. This means many of the available places for rent are luxury rentals, which demand a higher rent rate, such as renting Coral Gables luxury homes or Weston luxury homes. Even if someone can get a nice rental for an affordable price, it is standard procedure to have your rent rise every time you sign a lease. That is just the name of the game in the rental market.
Unfortunately for those renting in Florida, this can outprice many in the market for a decent rental. According to the researchers at Make Room, the metropolitan areas hit the hardest by the rent crisis in Florida are Daytona Beach and Miami.
Why Not Own, and then Rent?
There is a positive side to the high rental costs in Florida – buy. Buying a homes for sale in Oviedo or Coral Springs homes for sale may make the best sense for Florida residents. Even if they are seasonal visitors, the option to rent out the property during the time of the year when they are not living in Florida can actually provide them with a profit!
Anyone interested should speak with a Berkshire Hathaway HomeServices Florida Realty sales professional. Our years of experience in Florida real estate helps guide interested buyers to the right real estate buys, whether it be a single family home, townhome, condo, or apartment. Give us a call today!
