The new year has begun and after a complicated 2021, many are left to wonder what the housing market will look like throughout 2022. Many factors come into consideration when trying to understand
Why are rental prices in Florida so high?
Dated: December 31 2021
As we approach the end of 2021, many people have started to question why their rent prices are going up so much. All across Florida, the median rent has skyrocketed in comparison to the rest of the country, in light of recent studies.
According to a Harvard University report, over 60% of people who live in the Miami-Dade, Broward and Palm Beach County regions are paying more than 30% of their income for housing. Meanwhile in Central Florida prices also have been increasing significantly. 1
According to data from CoStar Group, during the pandemic, rates dropped significantly below the national average, but at the start of 2021 Florida has seen a huge spike in prices. Over 21% increase just in the last quarter of 2021. Palm Beach County is notably the highest average compared to other counties. 2
The lack of affordable housing is one of the reasons why people have been paying gradually more. Florida’s housing stock has increased 10% over the last decade, but units renting for $1,000 or less has declined 12%. Another major reason for the spike in rent prices is the fact that more people have been moving into Florida from higher-cost areas.
Meanwhile workers haven’t seen much difference in their income. For 2022 it is expected that employers will increase their budget for wages by 3.9%, according to “The Conference Board”.3 It is the biggest increase in over a decade. Although a notable raise, it’s not nearly enough to keep up with inflation, cost of basic items and especially the increase in rent prices.
Dedicating more than 30% of your monthly income just to afford somewhere to live shouldn’t be your main concern. Now more than ever is time to consider buying your own house and dedicating your time and resources for your future. You can read more about the benefits of owning a house compared to renting one in this article.
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