A new study from the University of Florida reveals a deepening rental crisis across Florida, with demand significantly outstripping supply. Rising rents, shrinking affordability, and increasing pressure on low-income households and seniors characterize the state’s rental landscape. The report highlights a critical need for both new construction and preservation of existing affordable housing stock to mitigate growing housing instability.
Key Takeaways
- Florida’s rental demand is outpacing supply, leading to a 39% increase in median rent between 2019 and 2023.
- Nearly 905,000 low-income renter households are at high risk of housing instability, spending over 40% of their income on rent.
- Renters aged 55 and older now constitute nearly 40% of cost-burdened households.
- Housing instability is on the rise, with thousands of individuals and families experiencing homelessness.
- Over 33,000 affordable rental units are at risk of losing their affordability restrictions in the next decade.
The Growing Rental Squeeze
The 2025 Statewide Rental Market Study, conducted by the University of Florida’s Shimberg Center for Housing Studies, paints a stark picture of Florida’s rental market. Despite adding over a million households and nearly 200,000 new renter households between 2019 and 2023, the supply of lower-cost rentals has not kept pace. While over 240,000 multifamily units were added, the surge in demand drove median rents up by 39%, from $1,238 to $1,719.
Renters Struggling Despite Employment
Even with robust job growth, housing costs are outpacing wages. The study found that 79% of renter households have at least one employed adult. Nevertheless, nearly 905,000 low-income renter households are spending more than 40% of their income on rent, placing them in a precarious position regarding housing stability. Older Floridians are particularly affected, with renters aged 55 and above now making up almost 40% of cost-burdened households.
Rising Housing Instability
The report underscores a statewide increase in housing instability. An estimated 29,848 individuals are currently homeless in Florida, including sheltered, unsheltered, and unaccompanied youth. Furthermore, an estimated 44,234 families with children are experiencing homelessness, with the majority being doubled up or staying in hotels and motels.
Affordable Housing at Risk
Florida’s publicly assisted housing programs provide a crucial safety net, supporting 314,200 affordable rental units. However, a significant portion of this stock faces an uncertain future. More than 33,200 units could lose their affordability restrictions within the next ten years if existing contracts are not renewed or if new preservation funding is not secured.
The Need for Preservation and New Construction
The study emphasizes that preserving existing affordable units is as critical as building new ones. This approach is often more efficient and cost-effective, especially in markets where land, labor, and insurance costs make new development challenging. Statewide trends indicate a consistent need across urban, suburban, and rural areas, driven by continuous in-migration, insufficient new construction at affordable price points, increasing reliance on rentals by smaller households and seniors, and persistent high cost burdens even for full-time workers.
Sources
- Report Shows Florida’s Rental Crunch, | Florida Realtors.