The South Florida region saw the highest rent increases in the country in the past year, with some rents more than doubling.
The median rent in the tri-county area jumped 57% from March 2021 to March 2022, according to the latest data from realtor.com. The region had the highest rent increases out of the 50 metro areas analysts studied, and makes South Florida's median rent more expensive than even the New York metro area.
South Florida has benefited from broader interest in relocation. While affordability is eroding as rents rise, Florida's lack of income tax continues to make it an attractive target for households looking to relocate, particularly from higher-tax areas, said Danielle Hale, chief economist at realtor.com.
The current median rent in South Florida is $2,988, while a year ago, the overall median rent was $2,499. It has the fourth-highest rent in the country, according to the study from realtor.com.
For comparison, here's how much rents jumped in larger metropolitan areas:
The pandemic phase actually lowered rents for studios and one-bedrooms in some areas, as remote work became more feasible. Tech-heavy areas such as San Francisco and San Jose saw rents for studios and one-bedrooms dip significantly, and remain below pre-pandemic prices.
"It's fair to say that many of the trends that are benefitting South Florida are likely to persist, so I expect continued rent growth," Hale said. "However, like we're seeing nationwide, I do expect a slowdown in the pace of [rent] growth so that rents don't get too far disconnected from household incomes."
Renters and their homeownership dreams
There's growing concern in the region from many experts who worry that the continued rise in rents will have a disastrous effect on the local economy.
"It's not just the lower-income community that is most impacted. It's a ripple effect and it's affecting everybody across the spectrum," said Linda Taylor, CEO of H.O.M.E.S in Broward County.
Already, South Florida has seen renters begin to leave the region for more affordable areas of the state, as wages aren't keeping up with the pace of housing costs.
Wages increased by 6% over the past year in the South Florida area, according to statistics from the U.S. Bureau of Labor, while housing values have increased by at least 30%.
Some have even made the decision to leave the state entirely and head for areas where the cost of living is cheaper.
All in all, the housing crisis — both the spikes in rent and the skyrocketing real estate market — is contributing to a lack of faith in the ability to one day become a homeowner.
"What we are hearing over and over from families is that they are having to relocate because they can't afford Broward County," Taylor added. "We don't seen an end to this [rental market]."
