Rents across Florida have surged by a staggering 39% between 2019 and 2023, a period that also saw a significant influx of one million new residents into the state. This dramatic increase in housing costs, detailed in a report by the University of Florida’s Shimberg Center for Housing Studies, is outpacing wage growth for many Floridians and contributing to a rise in homelessness.
Key Takeaways
- Florida rents for multifamily units increased by 39% from 2019 to 2023.
- The state experienced an inflow of approximately 1 million households during the same period.
- Homelessness among families rose by 28% in the last three years.
- Nearly 904,000 renting households are spending over 40% of their income on housing.
The Collision of Growth and Supply Shortage
Anne Ray, manager of the Florida Housing Data Clearinghouse at the Shimberg Center, attributed the rent hikes to a "collision" between Florida’s robust population growth and a limited housing supply. "Florida’s strong population growth has collided with limited housing supply, pushing rents beyond what many families can afford," Ray stated.
During the 2019-2023 timeframe, Florida added over 240,000 multifamily units. However, this construction boom was not enough to meet the demand, leading to a nearly $500 monthly increase in median rents, from $1,238 to $1,719.
Ashon Nesbitt, CEO of the Florida Housing Coalition, noted that the pandemic significantly hampered new construction, exacerbating the supply issue. "Florida’s not any different than most places and we saw the extreme rise in rents going back to the pandemic days and things have remained high as production pretty much came to a grinding halt for that period of time," Nesbitt explained.
Rising Homelessness and Housing Instability
The report highlights the severe consequences of these rising costs, with an estimated 904,000 renting households earning less than 60% of the median income now dedicating over 40% of their earnings to housing. This financial strain has contributed to a 28% increase in family homelessness over the past three years, according to data from the Department of Housing and Urban Development and the Florida Department of Education.
Nesbitt emphasized that many of those experiencing housing instability are essential workers. "Many of the folks that are experiencing that instability are part of our workforce. Most of the folks that this [report] calls out, these are folks that are working jobs and working many of the jobs that power our state’s economy," he said.
Efforts and Challenges in Affordable Housing
Various initiatives are underway to address the affordable housing crisis. The 2023 Live Local Act offers tax breaks to developers building multifamily properties for low-to-moderate-income individuals. Florida TaxWatch has recommended further measures, including tax credits for building affordable homes for middle-income families and for rehabilitating existing properties.
However, challenges remain. Nesbitt pointed out that current production often doesn’t align with the greatest need, particularly for those earning below 80% of the median income. "When the units that are being produced aren’t necessarily matching where the greatest need is, that’s why we have this growing gap," he stated.
Discussions around property tax elimination, as proposed by Governor Ron DeSantis, also raise concerns about the potential impact on low- to-moderate-income homeowners and the equitable distribution of tax burdens.
Looking Ahead
While new projects utilizing trust funds and other incentives are expected to increase housing supply in the future, the immediate concern is the growing gap between housing costs and affordability for a significant portion of Florida’s population. The state continues to grapple with balancing its rapid growth with the fundamental need for accessible and affordable housing.