MIAMI – In news that should come as no surprise to any Sunshine State tenant, a new report from Harvard University found that eight of the 10 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 program “Housing State of the Nation” report.
“After a banner year in 2021, the housing market is at an inflection point,” the report said. “Rising interest rates have calmed the home buying market, and the large number of apartments under construction should provide some relief on the rental side. For low-income households and households of color, however, the pressure from high housing costs is unlikely to ease.
Nationwide, rents for professionally managed apartments rose 11.6% in the first quarter of 2022, while rents for single-family homes rose 12.4%, the fastest pace on record dating back to 2004.
According to the university, in the 150 major U.S. real estate markets, the areas where rents rose the most were concentrated in the Sun Belt, particularly in Florida.
Naples led the pack with a staggering 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 single-family home rent, Miami leads the pack with a whopping 39% year-over-year increase, even eclipsing Cape Coral’s 28% increase.
Outside of Florida, rents have also rebounded in major coastal markets like New York, San Francisco, Boston, Los Angeles, Washington, DC and Seattle. These markets saw demand fall at the start of the pandemic.
“Modelling demand in the second quarter of 2022 has helped slow rent increases, but even as conditions in the professionally-run market segment begin to ease, serious housing affordability issues remain” , Sophia Wedeen, research analyst at the Joint Center for Housing Studies, wrote.
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. US areas with increases rent raised found Florida