After years of astronomical rent growth, Florida rents are finally settling down compared to the national average, according to researchers at Florida Atlantic University and two other schools.
“I would say 80% of my check goes directly towards the rent,” Laura Guilmain told WPTV.
That’s an unfortunate reality that Guilmain shares with many renters in South Florida.
“You’re always in the negative, if you have credit cards, you’re borrowing against your credit cards to make each month’s meets, you know,” Guilmain said.
According to a new study by FAU, there is some good news on the horizon. Rental increases in Florida are finally starting to settle down, compared to the national average.
End of March data shows a national rent increase of 3.5% but only a 2.7% increase in South Florida.
“It looks like rents are probably going to be under control in terms of, we’re not going to see dramatic rent increases for a while,” Dr. Ken Johnson, FAU real estate expert, said. “As long as we keep up the production of the number of units that we’ve been doing,”
However, Johnson said South Florida’s incomes still have not caught up with the current average rental prices. According to the study, in South Florida, “a household needs to make at least $109,925 to avoid paying more than 30% of their income toward rent.”
“Miami, Miami metro, this tri-county, is still in the most unaffordable areas in terms of rent to live in the country. That’s a big number,” Johnson said.
On top of that, with home prices as high as they are in South Florida, many renters feel buying is still far out of reach.
“We’re in debt trying to purchase. So, you’re not getting approved to purchase. So, you’re stuck in the renters circle,” Guilmain said.