Florida Atlantic University detects moderation in rental prices in Miami

A recent study of Florida Atlantic University (FAU) detected a moderation in the increase in rental prices in the southern state, contrasting with the notable increases in the Northeast of the country.

After periods of significant increases, Florida rents are showing signs of stabilizing compared to the national average.

The data were obtained from an ongoing project, co-produced by the FAU Real Estate Initiative, the Lucas Institute for Real Estate Finance and Development at Florida Gulf Coast University and the University of Alabama Real Estate Center.

All Florida metropolitan areas have experienced rent increases below the national average of 3.57% annually. In detail, rents in Cape Coral and North Port saw decreases of 2.83% and 0.39%, respectively, while in Miami the increase was 2.76%.

"Most metropolitan areas in Florida are returning to their historical price trends," explains Ken H. Johnson, FAU real estate economist.

"While renters still pay a premium in various markets, these increases have been reduced significantly each month over the past year," he added.

In the Northeast United States, the increases have been much steeper, with cities like Syracuse and Providence experiencing increases of up to 8.79% and 8.16% respectively.

"We are seeing some of the largest increases in the Northeast, primarily because housing supply is not expanding fast enough to meet demand," says Bennie Waller of the University of Alabama.

Regarding the ability to pay, in Miami a household needs to earn at least $109,925 annually so that he rental cost does not exceed 30% of your income.

This figure remains high compared to other cities in the state, reflecting the pressure that still exists on renters in Florida.

This study highlights the need for policies that facilitate access to housing and mitigate the impact of rental costs on the family budget.

"Although the situation is improving, many renters will continue to make sacrifices to keep a roof over their heads until incomes increase," concludes Shelton Weeks of Florida Gulf Coast University.