The Impact of COVID-19 on Florida’s Coastal Rental Market

The COVID-19 pandemic drastically reshaped where people choose to live, particularly in Florida’s charming beach towns. As remote work became the norm, many flocked to the coast, igniting a surge in demand for rental properties. This shift has had a significant and lasting impact on rental prices along the Florida coastline.

Rental Prices Skyrocket Post-Pandemic

As of February 2025, effective asking prices for traditional apartments in Florida were, on average, $172 higher than national rates, according to data from RealPage Market Analytics. This marks a stark contrast to the pre-pandemic years between 2015 and 2020, when Florida’s rental rates closely mirrored national averages.

Key Statistics

• Average Effective Rent (February 2025): $172 above national rates
• Historical Comparison (2015-2020): Rental rates aligned with national averages

Coastal Towns Join the Price Surge

Historically, only South Florida markets like Miami, West Palm Beach, and Fort Lauderdale saw rental growth that outpaced national averages. However, recent trends have extended this phenomenon to several small beach towns along both the Gulf and Atlantic Coasts. Notable districts now exceeding the U.S. average rental prices include:

• Naples-Immokalee-Marco Island
• North Port-Sarasota-Bradenton
• Port St. Lucie/Sebastian/Vero Beach

Taking the Lead: Naples

The Naples apartment market has seen one of the highest rent increases across Florida, with effective asking rents climbing to $2,212 in February 2025—an increase of $850 from February 2020. The demand for apartments in Naples has quadrupled historical absorption rates, greatly outpacing new supply:

• Apartment Increases: Approximately 5,300 new units added over the past decade, representing a 19% growth rate.
• Population Surge: Beyond average, population growth in Naples has been fueled particularly by residents aged 55 and older, leading to increased housing demand.

Monthly Rental Trends

North Port and Tampa

As for North Port-Sarasota-Bradenton, monthly rents reached $1,869 in February, while Tampa saw effective rents at $1,856. Both regions recorded some of the state’s highest demand in 2024:

• North Port: Absorbed nearly 5,230 units, double the historical average.
• Tampa: Logged demand for 12,960 units, also twice the market’s historical norm.

Supply vs. Demand

• North Port Supply Growth: Increased by 41.2% over the last decade.
• Tampa Supply Growth: Increased by 24.6%.

Escalating Rents Along the Atlantic Coast

In the Port St. Lucie/Sebastian/Vero Beach area, effective asking rents reached $1,884 in February 2025. Demand here has remained robust, with absorption rates meeting concurrent supply levels, and existing rental stock has grown by 25.1% over the past decade.

South Florida’s Housing Market Resilience

The South Florida trio of Miami, West Palm Beach, and Fort Lauderdale has also witnessed a notable influx of new residents since 2021. Rental prices in these areas are significantly higher than pre-pandemic levels, positioning them among the few Florida markets where demand outstripped supply in 2024.

Conclusion

Florida’s coastal rental market has undergone a significant transformation since the pandemic. The combination of remote work opportunities, an influx of new residents, and limited housing supply has caused rental prices to surge across beach towns and major cities alike. This evolving landscape continues to attract attention from both renters and investors alike.

For more insight on the rental market trends, consider exploring additional resources on RealPage and U.S. Census Bureau.