Why Rents Are Rising in Florida (And Things for Renters to Know)

By  //  July 23, 2021

Once a haven for affordable housing, Florida has been making the headlines of late as rental prices hit a record high. After falling in the early months of the COVID-19 pandemic, the average rent in S. Florida has been rising steadily and outpacing the national average.

According to data from Rentcafe.com, a nationwide listing service, the average rent for complexes in Fort Lauderdale increased 3.1% over the first year to reach $2,059, Rent in Boca Raton increased by a staggering 7.6% to reach $2,177, while the rent price for apartments in Lake Worth increased by 5.4% to $1,553.

And there seems to be no reprieve for renters in Florida. Rent could increase by up to 3.5% in the coming year, according to Ken. H. Johnson, an economist at Florida Atlantic University.

While rising rents are a positive sign of economic development, they also put a strain on low-income earners who are already struggling with a lack of affordable housing.

A new report from the Joint Center for Housing Studies at Harvard University found that more than a third of renters in the S. Florida region are “severely burdened,” spending more than 50% of their income on housing.

So, why are Rents Rising in Florida?

Economists say rising rents in Florida result from a myriad of factors. We’ll briefly look into these factors and explain why they’re impacting the rent prices in Florida.

A Housing Shortage (Low Inventory)

Florida’s housing climate is currently characterized by a surge in demand and a shortage of supply. In 2020, the housing market across the US saw more buyers looking to purchase homes and sellers opting to hold on to their properties.

That home-buying frenzy, partly attributed to the rise in remote working, has led to rising rents since fewer homes are on the market. This housing crisis is worse in Miami, Florida.

Increase in Cash Purchases for Homes

According to a new report from Broward, Palm Beaches & St. Lucie Realtors, cash sales have skyrocketed in all the counties in S. Florida.

■ Miami Dade County: 25% cash sales compared to 12% in 2020.

Broward County:  24% cash compared to 11% in 2020.

Palm Beach County: 41% cash sales compared to 27% last year.

Homebuyers who need a mortgage are finding it hard to compete with buyers—many out of state—who are offering to purchase with cash. This is driving many people to rent, further pushing the prices upwards.  

The Wave of New Florida Movements

People are moving away from the expensive, densely populated urban areas and settling in affordable areas like Tampa Bay. That drives up rent in these new targets as the demand for houses continues to grow with no apparent changes in supply.

3 Things for Renters to Know

As rent costs continue to rise in Florida, there are things you, as a potential tenant, should keep in mind. We’ll look into the three things every renter must know.

1. Proof of Income

Florida landlords often ask for your pay stubs to make sure you can afford to pay the rent. Some rental agencies may even ask for several pay stubs, so make sure you have your paycheck stubs ready before embarking on your house shopping journey.

If your employer doesn’t provide pay stubs, you can easily create your stubs using a pay stub maker. For example, you may consider using a pay stub creator which can provide clear, concise, and accurate calculations.

2. Rent Increment Laws

While other states are implementing rent control laws, Florida prohibits it. So, raising rent is a landlord’s right. However, rent increments cannot be effected on an existing lease. It can only be implemented once the lease or tenancy ends.

3. Paying of Rent

Florida landlord-tenant law stipulates that tenants must pay rent on time and according to the terms of the lease.

However, there are circumstances in which a tenant may choose to withhold the rent, like when the landlord fails to fix problems with the property. In such cases, the tenant is required to give a 7-days notice before withholding the rent.

We hope this article will enlighten you on the housing climate in Florida. Feel free to comment and share.