Residential rental rates might have leveled off in the Sunshine State after three years of wild increases, according to a recently released Florida TaxWatch report.
Rental prices in Florida had skyrocketed in the wake of the COVID-19 outbreak, jumping from an average rental rate of $1,187 per month in December of 2020 to $1,545 in December 2023.
While the most recent December price seems high in comparison to pre-pandemic levels, the figure has actually declined in the past year, the report stated. The cost of a monthly rental unit has fallen in most metro areas in Florida since December 2022. A one-bedroom rental unit in Miami now runs $2,600 per month. That's a 2.3% decrease over a year ago.
Fort Lauderdale, Orlando, Tampa and St. Petersburg all saw decreases in rental rates over the past year as well. Orlando had the biggest decrease in monthly rates, dropping 7.1% in the past year, falling to an average monthly rate of $1,570 per month for a one-bedroom apartment.
"Fortunately, initiatives like the 'Live Local Act' of 2023 have helped the rental market begin to stabilize, but the Florida Legislature must continue to support renters and ensure Florida remains both a desirable and affordable place to live and work," said Jeff Kottkamp, Executive Vice President, General Counsel and Acting CEO and President of TaxWatch, a state government watchdog group.
Jacksonville and Tallahassee were the only two large metro areas that saw annual increases in monthly rental rates. Jacksonville had a 1.6% increase in the past year to $1,270 per month for a one-bedroom apartment. Tallahassee's rental rate jumped to $970 per month on average for a one-bedroom unit, a 4.3% annual increase. But both of those cities saw a decrease in rental rates over the year for two-bedroom units, which fell about 2% in each city.
While the decrease in most rental markets in the state is welcome news, TaxWatch warned rental rates are still inordinately high. The watchdog group warned that as more and more new residents are flooding the state, the chance of any significant drop in rental rates in the near future is not likely.
"Florida is still welcoming an influx of new residents, from young families to retirees, every single day, but affordability — which is largely driven by housing costs — determines whether they will stay in our great state," Kottkamp said.
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