Rent Growth Normalizes as Florida Faces Prolonged Affordability Crisis

Renters across Florida are faced with a prolonged affordability crisis despite rent growth having returned to normal, according to researchers at Florida Atlantic University and two other schools.

Rent growth for the most part has returned to normal in Florida, with most of the measured metro areas in the state seeing rent growth at or below the national average, according to August numbers from the Waller, Weeks and Johnson Rental Index.

Orlando saw the smallest year-over-year increases at 1.10 percent, followed by Jacksonville, 1.31 percent; Lakeland, 2.08 percent; Palm Bay, 2.33 percent; Tampa, 2.69 percent; Miami, 2.83 percent; Deltona, 2.99 percent; North Port, 4.02 percent; and Cape Coral, 6.90 percent. Rent growth on a national level for August reached 3.25 percent year-over-year.

“This is indicative of the rental market returning back to normal as rent usually increases by three to five percent in a typical year. Even our premiums are normalizing,” said Ken H. Johnson, real estate economist with FAU’s College of Business. “However, we are entering a new normal where overall rents are high, and renters are left with a prolonged affordability crisis.”