Study: U.S. Rent Increases Cooling, But Not in Florida
The U.S. rental crisis appears to be softening, although Florida rents remain among the nation鈥檚 most overvalued, according to researchers at 91制片厂 and two other schools.
Miami leads the U.S. with renters spending 18.22 percent more than they should, based on past leasing price history. Five other Florida markets are among the top 10 in most overpriced rental premiums: Cape Coral-Fort Myers, Tampa, North Port-Bradenton, Orlando and Deltona-Daytona Beach.
Nationally, the average rental premium at the end of September was 9.33 percent.
When it comes to the largest annual increases, Miami again tops the list at 18.81 percent. Four other Florida markets rank in the top 10: Cape Coral-Fort Myers, Deltona-Daytona Beach, Orlando and Palm Bay-Melbourne. In typical markets, rents increase only 3 to 5 percent a year.
Of the 100 measured markets nationwide, 38 posted month-over-month rental declines in September. El Paso, Texas had the largest decline at 1.96 percent.
The full rankings can be found .
鈥淚t is clear from the data that rents across the U.S. are reverting back to a more normal long-term trend,鈥 said , Ph.D., an economist in 91制片厂鈥檚 . 鈥淏ut I鈥檓 not surprised to see Florida still at the head of the pack, given the strong demand and severe shortage of units.鈥
, Ph.D., of Florida Gulf Coast University鈥檚 , said the long-term effects of Hurricane Ian on the southwest Florida rental market are unclear.
鈥淏ut in the short term, it is reasonable to expect a continuation of our pre-Ian supply chain issues,鈥 he said. 鈥淚t most likely will be harder than ever to acquire materials and labor at reasonable prices, which will definitely exacerbate rental issues in this area of the state.鈥
, Ph.D., of The University of Alabama鈥檚 , said he鈥檚 encouraged by the national trends.
鈥淣o one can say the rental crisis is over just yet, but it isn鈥檛 getting worse, at least in some areas,鈥 Waller said. 鈥淔or example, the most recent average rent increase in Birmingham, Alabama was 8.36 percent, but four months ago the increase was 10.99 percent. So it鈥檚 moving in the right direction.鈥
The researchers use leasing data from Zillow鈥檚 Observed Rental Index to determine existing rents and statistically model historical trends from 2014. The Waller Weeks & Johnson Rental Index covers the entire rental stock of homes and apartments.
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