[Orionsdolph]

Harvard Report: 8 of 10 U.S. metro areas with highest rent increases were in Florida



"In news that should come as no surprise to any Sunshine State renter, a new report out of Harvard University found that eight out of 10 metro areas with the highest year-over-year rent increases were in Florida.

Harvard’s Joint Center for Housing Studies conducted the analysis as part of its regular “State of the Nation’s Housing” report.

Across the country, rents for professionally-managed apartments rose 11.6% in the first quarter of 2022, while rents for single-family homes went up 12.4%, the fastest recorded pace going back to 2004.


According to the university, in America’s 150 large housing markets, the areas where rent increased the highest were concentrated in the Sun Belt, particularly in Florida.

Naples led the pack with an eye-popping 42% year-over-year rent increase in the first quarter of 2022, while Sarasota (37%), Cape Coral (32%) and West Palm Beach (30%) followed closely behind.

When it comes to rent for single-family homes, Miami led the pack with a whopping 39% increase year-over-year, dwarfing even Cape Coral’s 28% increase."


https://www.local10.com/news/local/2...re-in-florida/

[kyle19125]

Which leads to the topic of sustainability. Of those who choose to stay in the state and somehow adjust their budgets to paying an additional 25%-30% on average with salaries that are stagnant or increase minimally annually (3% range), how long do we expect that to hold up or better have yet them participate in the local economy?

[beach43ofus]

It keeps out the rift raft, but makes it harder on the valuable workers we need to do things we can't do, or don't want to do.

Florida is a highly desireable place to live, so high demand & low supplies are driving up rents.

Florida was undervalued for a long time, so we are now in a "catch-up" phase.

The 2017 SALT $10k local tax caps, Covid, & work-from-home, & baby boomers, have also contributed to rising FLA rents.

Investors, Corporations, & residential REIT's, investing in residential real estate, adds to the upward rental price pressure.

Its a perfect storm in Florida for rising rents, & many factors are in play.

[Corrie22]

^ exactly right

Vacation rentals are also playing a big part of that too...

Here in the Keys a lot....a whole lot....people have changed their yearly rentals to vacation rentals

can't say I blame them....why get $1200 a month....when you can get over $2000 a week

...that has priced out a lot of people from living/working here

[kyle19125]

Originally Posted by beach43ofus

It keeps out the rift raft, but makes it harder on the valuable workers we need to do things we can't do, or don't want to do.

Florida is a highly desireable place to live, so high demand & low supplies are driving up rents.

Florida was undervalued for a long time, so we are now in a "catch-up" phase.

The 2017 SALT $10k local tax caps, Covid, & work-from-home, & baby boomers, have also contributed to rising FLA rents.

Investors, Corporations, & residential REIT's, investing in residential real estate, adds to the upward rental price pressure.

Its a perfect storm in Florida for rising rents, & many factors are in play.

The riff-raff will figure out a way to get here, they always have. The situation also keeps the marginally above water captive here, and those who might not have thought of crime as an end to means perhaps the only viable alternative....minus any social services to speak of. When people get squeezed and desperate unfortunately, there's little alternative to survive. It'll be interesting to see how the crime rate pans out as a result.

[beach43ofus]

Originally Posted by Corrie22

^ exactly right

Vacation rentals are also playing a big part of that too...

Here in the Keys a lot....a whole lot....people have changed their yearly rentals to vacation rentals

can't say I blame them....why get $1200 a month....when you can get over $2000 a week

...that has priced out a lot of people from living/working here

I don't think weekly vacation rentals are used in calculating residential rental prices. I'm not even sure that short term rentals, less than 6 months are reflected in the rental prices studies look at. I'm thinking they look at 6+ months or 7+ months, to eliminate the seasonal rentals.

[beach43ofus]

Originally Posted by kyle19125

The riff-raff will figure out a way to get here, they always have. The situation also keeps the marginally above water captive here, and those who might not have thought of crime as an end to means perhaps the only viable alternative....minus any social services to speak of. When people get squeezed and desperate unfortunately, there's little alternative to survive. It'll be interesting to see how the crime rate pans out as a result.

The riff raff can find their way here, but they will not be able to remain here, due to housing shortages & rental prices. They need to live somewhere, & landlords are cracking down on lots of people living in rentals to share the costs. Local laws are also changing to prevent this. Heck, places like Vero Beach shut down all rentals less than 1 year.

Low income people will be pushed out, so less will be here to commit crimes, & Florida is tough on crime, so the criminals will move to places that are soft on crime...like New York, & Cali.

[Orionsdolph]

Originally Posted by kyle19125

Which leads to the topic of sustainability. Of those who choose to stay in the state and somehow adjust their budgets to paying an additional 25%-30% on average with salaries that are stagnant or increase minimally annually (3% range), how long do we expect that to hold up or better have yet them participate in the local economy?

Originally Posted by Orionsdolph

Florida was 2nd behind only New Hampshire in wage gains from Q4 2020 to Q4 2021





Wage increases for the 10 largest states Q4 2020 to Q4 2021


1. Florida

Non-adjusted percentage change in wages (YoY): +9.7%
Average weekly wages Q4 2021: $1,297


2. North Carolina

Non-adjusted percentage change in wages (YoY): +7.8%
Average weekly wages Q4 2021: $1,241


3. Georgia

Non-adjusted percentage change in wages (YoY): +7.0%
Average weekly wages Q4 2021: $1,292


4. Illinois

Non-adjusted percentage change in wages (YoY): +6.9%
Average weekly wages Q4 2021: $1,473


5. New York

Non-adjusted percentage change in wages (YoY): +6.8%
Average weekly wages Q4 2021: $1,829


6. Texas

Non-adjusted percentage change in wages (YoY): +6.3%
Average weekly wages Q4 2021: $1,376


7. Ohio

Non-adjusted percentage change in wages (YoY): +5.2%
Average weekly wages Q4 2021: $1,221


8. Pennsylvania

Non-adjusted percentage change in wages (YoY): +5.1%
Average weekly wages Q4 2021: $1,352


9. California

Non-adjusted percentage change in wages (YoY): +4.8%
Average weekly wages Q4 2021: $1,804


10. Michigan

Non-adjusted percentage change in wages (YoY): +2.7%
Average weekly wages Q4 2021: $1,291




August 11, 2022
https://smartestdollar.com/research/...astest-in-2022

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[Corrie22]

Originally Posted by beach43ofus

I don't think weekly vacation rentals are used in calculating residential rental prices. I'm not even sure that short term rentals, less than 6 months are reflected in the rental prices studies look at. I'm thinking they look at 6+ months or 7+ months, to eliminate the seasonal rentals.

I was thinking more on the lines that people taking the residential/yearly rentals off the market...and making them vacation rentals

....that's making the supply of yearly rentals a lot less....which is also driving prices up

before this vacation rental thing caught on....there were a lot more yearly rentals

here in the Keys..yearly rentals are almost impossible to find...and if you do..they are going for a premium now

[kyle19125]

Originally Posted by beach43ofus

The riff raff can find their way here, but they will not be able to remain here, due to housing shortages & rental prices. They need to live somewhere, & landlords are cracking down on lots of people living in rentals to share the costs. Local laws are also changing to prevent this. Heck, places like Vero Beach shut down all rentals less than 1 year.

Low income people will be pushed out, so less will be here to commit crimes, & Florida is tough on crime, so And the criminals will move to places that are soft on crime...like New York, & Cali.

The likelihood of people moving to even more expensive states hundreds of miles away is pretty slim. Staying in a known location where they're already living is a much more reasonable and likely scenario. Property Management companies are also not "cracking down on rentals" and from my experience here in Central Florida likely to rent to anyone with enough money to move-in and keep occupancy rates up.