Florida Rent Keeps Rising
According to FAU’s Waller, Weeks, and Johnson Rental Index, rental rates across the country have continued to increase at a rapid pace. In year-over-year percentages, double-digit rent increases occurred in 92 of the 107 Metro Areas that they measure across the United States.
Here’s a Screenshot of the Top 20 Metros Sorted by Rental Percentage Increase:
Florida Tops Rent Rate Increases
10 of the top 20 metro areas with the largest rent increases are located in Florida, with Jacksonville taking the #15 spot at a 13.49% increase in rental rates for April 2021 to April 2022 and almost a 1% increase over the last month alone (0.81%).
According to their research, average current rents for Jacksonville are $1,748 per month where they were expected to be around $1,540 based on previous historical price trends. This means that Jacksonville area rents are 13.49% higher than they ‘should be’, or what they are referring to as ‘overvalued’.
Rents are determined primarily by supply and demand, so ‘overvalued’ is a relative term. Until and unless vacancy rates start increasing to the point where landlords begin to offer lower rates or incentives, rental rates are likely to keep rising. More new apartment communities being built will provide more inventory, which will help along the way, but as we’ve seen in other recent articles, there is a Net Positive Migration from other states into Florida thus keeping demand high.
Another trend taking place, especially in touristy areas like downtowns and beaches, is long-term rental units being purchased and/or converted to short-term rentals using AirBnB and the like. Landlords are realizing increasing gains with short-term rentals since they can charge more on a per-night or weekly basis than they can on a monthly or annual basis.
We’re even seeing trends where gutsy entrepreneurs are snapping up annual rentals and sub-leasing them as short-term rentals. Of course, there are pitfalls to this strategy including ensuring that primary lease agreements legally allow sub-leasing as well as potential local zoning issues.
For the moment, rents across the country are increasing and since real estate is all about Location-Location-Location, it makes sense that rents in Florida continue to increase.
As we continue to say…
If you’re paying for housing, you’re paying SOMEONE’s mortgage.
You’re either paying Your Own Mortgage, or you’re paying your Landlord’s.
That choice is yours.
If you’re looking to buy or rent, Aqualand can help. Contact Us Today for a Free Consultation.