Florida’s rental market is facing significant challenges, with rising costs and intense competition making it difficult for many, especially retirees, to find affordable housing. Population growth has outpaced housing supply, leading to soaring rents and a growing number of cost-burdened households across the state.
Key Takeaways
- Nearly 905,000 low-income renter households in Florida are paying over 40% of their income on housing.
- Miami, Fort Lauderdale, Tampa, Port St. Lucie, and Orlando are identified as cities with the most competitive rental markets.
- Median rents have increased substantially, and a significant portion of renters are renewing leases due to the difficulty of finding new, affordable options.
The Growing Affordability Gap
A recent study from the University of Florida’s Shimberg Center for Housing Studies reveals that approximately 904,635 renter households earning below 60% of their area median income are considered cost-burdened. This means they allocate more than 40% of their income to rent. These struggling households are distributed throughout the state, with the majority concentrated in Florida’s most populous counties.
Population Surge and Rental Market Strain
Florida has experienced a substantial influx of new residents, adding over a million households between 2019 and 2023, with nearly 195,000 of these being renters. Despite the addition of more than 240,000 multifamily units, the median rent has climbed by nearly $500 per month, from $1,238 to $1,719. This surge in demand, driven by migration from other states, has created a highly competitive rental environment.
Cities Facing Intense Rental Competition
Several Florida cities are particularly challenging for renters, especially retirees seeking to lease properties. Miami stands out as the hottest rental market nationally, with an incredibly high rental competitive index score. Experts report that units in Miami are being leased within about 30 days, with approximately 20 renters vying for each available spot. Other cities experiencing significant rental competition include Fort Lauderdale, Tampa, Port St. Lucie, and Orlando. In Tampa, for instance, nearly 70% of renters are renewing their leases, a notable increase from the previous year, indicating a reluctance to move due to the difficulty of securing new housing.
Rising Homelessness and Housing Preservation
The tight housing market and displacement caused by events like hurricanes are contributing to a rise in homelessness. The report estimates that a significant number of individuals and families lack stable housing. While over 314,000 affordable rental units are available through state and federally assisted programs, there is a future risk, as more than 33,000 of these units may lose their affordability protections by 2034 unless measures are taken to renew them. Preserving and expanding these affordable housing options is crucial to meet the needs of Florida’s growing population and maintain housing affordability.
Sources
- Retirees Should Avoid Renting in These 5 Florida Cities, GOBankingRates.
- Report: Florida Renters Struggle With Housing Costs, | Florida Realtors.