Rent growth in Florida continues to rise
Rents have skyrocketed across the United States, causing many to tap into their savings, downsize or fall behind on payments and risk eviction now that a federal moratorium has ended.
In the 50 largest metropolitan areas in the country, the median rent increased a staggering 19,3% from December 2020 to December 2021, according to a Realtor.com analysis of properties with two bedrooms or less.
And nowhere was the jump greater than in the Miami metro area, where the median rent soared to $2850, up 49,8% from the previous year.
Other Florida cities (Tampa, Orlando, and Jacksonville) and the Sun Belt destinations of San Diego, Las Vegas, Austin, Texas, and Memphis, Tennessee, saw spikes of more than 25% during that time period.
Rising rents are a growing driver of the high inflation that has become one of the nation's top economic problems.
Data from the Department of Labor, which covers both existing rentals and new listings, shows much smaller increases, but these too are recovering. Rental costs rose 0,5% in January from December, the Labor Department said last week.
That may sound small, but it was the biggest increase in 20 years and will likely accelerate.
Economists worry about the impact of rent increases on inflation because big jumps in new leases are reflected in the US consumer price index, which is used to measure inflation.
Inflation jumped 7,5% in January from a year earlier, the biggest increase in four decades. While many economists expect that to ease as supply chains disrupted by the pandemic unravel, rising rents could keep inflation high through the end of the year, as housing costs account for a third of the rate. consumer prices.
Things have gotten so bad in Boston, which has almost overtaken San Francisco as the nation's second-most expensive rental market, that a resident went viral for pranking an igloo on the market for $2,700 a month. “Heat/hot water not included,” tweeted Jonathan Berk.
Experts say many factors are responsible for skyrocketing rents, including a nationwide housing shortage, extremely low rental vacancies and unrelenting demand as young adults continue to enter the crowded market.
Whitney Airgood-Obrycki, lead author of a recent report from the Joint Center for Housing Studies at Harvard University, said there was a lot of "pent-up demand" after the initial months of the pandemic, when many young people moved back home. with their parents. Starting last year, when the economy opened up and young people moved in, "rents really took off," she said.
According to the US Census Bureau, vacancy rates for rentals during the fourth quarter of 2021 fell to 5,6%, the lowest level since 1984.
"Without a lot of rental vacancies that landlords are used to having, that gives them some pricing power because they're not sitting in empty units that they need to fill," said Danielle Hale, chief economist at Realtor.com.
Meanwhile, the number of homes for sale has been at an all-time low, contributing to skyrocketing home prices and many higher-income households remaining renters, further increasing demand. Source: AP News.
Author: Carmen Medina 9:39 am