Better Supply-Demand Balance is Key to More Moderate Rents
Crushing rent increases remain the norm across Florida and beyond, and the Federal Reserve’s recent interest rate hike is unlikely to improve the landscape for cash-strapped renters, according to researchers at Florida Atlantic University and two other schools.
The Waller Weeks & Johnson Rental Index, a collaboration started this year by FAU, The University of Alabama and Florida Gulf Coast University, finds that renters are paying significantly more than expected based on historical trends in individual markets.
Metro Miami was the nation’s most overvalued rental market in May for the third consecutive month, according to the index. In Miami, renters were paying a premium of 22.70 percent.
Five other Florida markets also are in the top 10:
• No. 2 Fort Myers (20.41 percent)
• No. 4 Bradenton/Sarasota (17.86 percent)
• No. 5 Tampa (17.52 percent)
• No. 7 Port St. Lucie (15.89 percent)
• No. 9 Lakeland (15.36 percent)
Markets outside Florida in the top 20 include:
No. 6 Knoxville, Tennessee (16.92 percent); No. 10 Bakersfield, California (15.33 percent); No. 16 Phoenix (13.76 percent); No. 19 Las Vegas (13.20 percent) and No. 20 Austin, Texas (13.02 percent).
May’s average monthly rental rate in the U.S. was $1,979 – 9.85 percent above what the researchers estimate renters should be paying based on past market trends.
Fort Myers had the nation’s largest year-over-year rent increase in May at 33.10 percent, followed by Miami at 31.04 percent. The U.S. average was 15.87 percent. Rents traditionally rise by only 2 or 3 percent a year. The full rankings of 107 metros can by clicking the rest of the story below.
Renters and home buyers may find some relief in the My State MLS Financial Assistance - State Directory
We've created a state-by-state USA directory of federal, state, and local financial assistance programs to help residents that need information or a helping-hand to stay in the place they are living in, or find and pay for a new place to live.
Debt relief and down payment financial assistance programs are lending a hand to millions of Americans to get a residence.Whether you rent or own your current place to live, click on the state you reside in and access direct links to the financial assistance programs available in your area.
Real estate brokers and agents are welcome to use the directory to help their clients find financial assistance.