While the population of Florida increased by 14.6% from 2010 to 2020, the number of housing units only grew by 9.7% according to the US Census Bureau—leading to high demand for properties across the state.
Many factors have encouraged a wave of new residents in Florida over the past couple of years. During the pandemic, people were enticed by the appealing climate and loose restrictions of particularly South Florida—with a large population of remote workers migrating to the region.
With a growing number of tech and finance businesses, workers were also drawn to opportunities in employment and business. And, as more and more people return to the cities and metropolitan areas following the pandemic, demand for rental properties in the state continues to climb.
Within Florida’s surging population are more renters than ever before.
Many would-be first-time buyers are continuing to rent due to increased mortgage rates, interest-rate hikes, and rising cost of living across the nation.
As a result, listings are being snapped up before many interested tenants even get a chance to view the property. Bidding wars are prevalent, enabling landlords to increase prices even further.
Apartment occupancy rates in the US are almost the highest they have been in more than two decades, according to property management software company RealPage. A towering 95.5% of rentals were occupied in the US from the start of the year up until June.
Occupancy rates are buoyed by the fact that tenants are less inclined to move, with close to two-thirds of US renters opting to renew their leases in the first part of the year. It is clear that many tenants would prefer to stay out of the US’s competitive rental market—and who can blame them?
Florida dominates the US’s most competitive rental markets
Florida made up 3 of the top 5 Most Competitive Rental Markets in 2022 according to RentCafe, a nationwide apartment search website. Out of the 20 markets surveyed, Miami-Dade County took first place—where 31 prospective renters are competing for a single listing, apartments are 97.6% occupied, and the lease renewal rate sits at 75 per cent.
Orlando and Southwest Florida also bagged a top-spot in the rankings, where average prospective renters number at 22 and 20 respectively. The number of occupied apartments and the lease renewal rate for both areas fell short of Miami-Dade’s figures by a fraction.
Data also showed that, despite its reputation as a top retirement spot, most renters in the Sunshine State are of working age. It seems that the Florida rental market is diversifying.
Single-family rents rise
In May 2022, the US saw a 14% increase in single-family rent prices compared to the previous year, according to real estate data firm, CoreLogic.
Out of 20 metro areas, Miami experienced the most dramatic price increase at an immense 39.5 per cent. This marked the 10th consecutive month Miami has topped the nation for growth and took the median asking rent to $2,488 per month. The city was followed closely by Orlando, which saw a 24.8% increase in single-family rent prices.
Capitalising on Florida’s rental market
With demand high and average rents rising faster than in other states, the Florida rental market makes for an attractive investment.
In Q2 2022, house prices across the US rose 17.7% compared to the previous year, according to the Federal Housing Finance Agency House Price Index. Data shows that house prices rose the most in Florida (30% overall), with areas such as North Port, Cape Coral, Tampa, Orlando and Miami bagging a place at the top of the table.
If you’re interested in rental investments in the US, Florida is definitely one to be looking into this year.
Contact us today to discover available properties in Florida.
