Rental prices in the Orlando area and across the country experienced a double-digit rise for the first time in two years. They grew three times faster than they had been before the pandemic. More than half of the 50 largest metro areas reported rent increases of more than 10% over the previous year, including Tampa, Miami, and Orlando.
The rental industry in Central Florida is thriving right now. According to the Realtor.com® Monthly Rental Report, rental rates experienced a double-digit rise for the first time in two years. In addition, they climbed three times faster than previous to the implementation of COVID.
Rents increased by double digits in more than half of the country's 50 largest metro areas over the previous year, with Tampa (+30.6 percent), Riverside, Calif. (+28.6 percent), Miami (+27.6 percent), and Phoenix (+25.5 percent) among the most significant increases.
"To put it another way, trends indicate that rents are making up for the lost time. According to Realtor.com Chief Economist Danielle Hale, "Rents stayed low during some of the worst months of the pandemic, expanding at a sub-2 percent rate from September 2020 to March 2021, which coincided with a period in which for-sale home prices were increasing by the double-digit percentage." In addition, "We have reached a point in the COVID recovery when people are ready to relocate, and we are seeing a growing sense of urgency to find new housing as soon as possible." It is reasonable to assume that much of the increase in demand is due to vaccines opening up workplaces and city life, young individuals feeling more confident of striking out on their own, and homebuyers requiring a break from the hot property market. To make that happen as quickly as possible, many people are willing to pay top dollar, which could lead to even more growth in rents over the next several months.
National rentals are increasing by double digits as rates for all unit sizes hit new highs.
The median rental price in the United States reached a new high of $1,633 in August, as rent growth surged to a double-digit rate, increasing by 11.5 percent year on year in the month. Since the pandemic outbreak began, annual rent growth has more than tripled.
All of the unit sizes tracked by Realtor.com experienced new rental price highs:
- Two bedrooms went for $1,828.
- One-bedroom went for $1,524.
- Studios went for $1,338, all of which were new records.
In addition, because of the increased demand for more space during the pandemic, both two-bedroom (+12.3 percent) and one-bedroom (11.6 percent) rents rose by double digits compared to the previous year. Studio rents have also seen a significant boost, rising by 8.3 percent year on year to a median of $1,338 per month.
Rents continue to rise in most significant markets, with secondary metro areas leading the way.
In August, rents increased by double digits compared to the previous year's same month in 28 of the 50 largest U.S. areas. The ten metro areas with the highest yearly rent growth in August were as follows: Tampa (+30.6 percent), Riverside (+28.6 percent), Miami (+27.0 percent), Phoenix (+25.5 percent), Las Vegas (+23.4 percent), San Diego (+23.4 percent), Memphis (+21.8 percent), Austin (+21.7 percent), Orlando (+21.4 percent), and Atlanta (+21.2 percent).
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About Realtor Scott Garrison:
Bringing over 33 years of experience as a local Orlando Realtor, Top Central Florida Realtor SCOTT GARRISON of the Garrison Brothers Realtor Team at ReMax Town & Country Real State has helped perhaps more Orlando-Area families and investors buy and sell Central Florida Residential Real Estate than any other of the #19,000+ Orlando Realtors currently working in the Central Florida area!
Living in Oviedo and with RE/MAX Real Estate offices in both WINTER SPRINGS, Florida and WINTER PARK, FL, Top Realtor SCOTT GARRISON actively serves your best Residential Real Estate needs virtually anywhere you’d want to be in Central Florida… including Orange, Seminole, Volusia, Osceola, and Lake Counties. Scott has lived here in the Central Florida local Orlando-Area for nearly all of his life, attending the local Winter Park High School and graduating with several degrees from the nearby University of Central Florida.
As a Top Seminole & Orange County Real Estate Agent, Realtor Scott Garrison also has extensive experience in Residential Sales and Purchases, Vacant Land and in helping clients with Foreclosures and Short Sales! He owns multiple Rental Property right here in the area, and over the years, has done many “flips” by buying “ugly houses” and making them Pretty for a new buyer, so he also understands the Real Estate Investor mindset! Call Scott today to find out why “This Realtor WORKS!”
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