With the popularity of short-term rentals and working remotely both rising over the last few years, it should come as no surprise to hear that rental prices have been increasing at a significant rate. Realtor.com posted their rental report showing that rent has grown five times faster compared to the previous year. While this is a national average, there are certain markets that have spiked even higher.
Florida’s Rental Market Is Red Hot
Leading the list of metro areas that have had six straight months of double-digit rent increases are Miami, Tampa and Orlando. Each city’s average rent cost has gone up by over 34% between December 2020 and 2021. As professionals look to move their remote office to a more idyllic setting, they’ve set their eyes on Florida with demand not showing any signs of slowing.
Rent growth is always welcome news for real estate investors as it gives them a chance to either increase rates or see new applicants as they leave more expensive rentals. Tenants that aren’t interested in paying higher rent have started looking at purchasing a home instead. Rising interest rates add more fuel to the fire for new homeowners looking to strike the perfect balance between price and interest rate.
Rising Income Is Helping To Offset Rent
Remote workers that make up a large portion of the new wave of relocation are also experiencing an increase in wages as the job market fights to keep workers. Smaller rental units found in most metro areas are being snagged by these young professionals as they move in alone or with a partner rather than an entire family. Lower expenses paired with higher salaries means these potential tenants are able to comfortably pay higher rental costs and are happy to do so.
Families who rent may see houses with two or more bedrooms dropping in rent later this year as the need for more square footage starts to dwindle. It may also be time to explore purchasing a family home with both prices and interest rates expected to rise through 2022. The sooner a mortgage is taken out, the lower the interest rate will be when locked in. If you have flexibility on where you can work, moving out of the downtown neighborhoods may also prove to be an easy money-saving method.
Whether you’re wanting to invest in real estate to ride the rental wave or simply want to settle down, the Potempa Team is here to help. Leveraging years of local real estate experience, our team can provide you with insights into the micro markets found within each neighborhood. Finding the perfect property is easier than ever with the Potempa Team, so please don’t hesitate to reach out today to get started!