Are Florida rental prices dropping? What does cost burden mean?

October 25, 2023October 25, 2023 Admin

South Florida’s rent prices may have cooled off in August, but it’s still one of the most expensive areas to live in nationwide.

And according to a recent study from online marketplace for apartment listings Apartment List and U.S. Census Bureau Data, more than half of all renters in the country are still “cost-burdened.” And six Florida real estate markets made it into the top 20 most cost-burdened areas in the nation.

Here’s what being cost-burdened means and which areas of Florida have the most cost-burdened households, according to Apartment List’s recent study.

What does cost burden mean in housing?

According to the U.S. Census Bureau, a household is considered cost burdened when more than 30% of the household’s income is spent on rent, mortgage and other housing needs. And households that spend more than 50% of the household income housing costs each month are considered severely cost-burdened.

“Although rent growth has cooled significantly over the past year, the national median rent is still 23% higher than it was just three years ago, and in some markets, the increase has been even more substantial,” Apartment List’s study says. “Newly released data from the U.S. Census Bureau shows that these rapid increases in housing costs have been taking a meaningful toll on affordability.”

Is there a maximum rent increase? Which Florida cities have the highest rent prices?

Are rental prices dropping in Florida?

There are 3.9 million fewer affordable homes available to Americans now than there were 10 years ago, according to the Harvard Joint Center for Housing Studies’ latest report on the state of the country’s housing situation.

A recent study from Florida Atlantic University, Florida Gulf Coast University and the University of Alabama analyzed the 2023 August rent prices of the 100 largest metropolitan areas in the country and found that South Florida is one of the least affordable places for renters in the U.S.

The price of rent in most of Florida’s big cities is really expensive and unaffordable for people who don’t have a six-figure salary – which is the case for most Floridians – but costs still aren’t as high as they were in 2021 and 2022.

You can find more information on how south Florida ranks nationally for housing affordability and if there’s a maximum rent increase in the state of Florida here.

What are the most rent-burdened cities in the U.S.?

“Markets throughout the South and along the coasts tend to have higher cost burden rates, while the middle of the country fairs a bit better,” Apartment List’s study says. “Florida and California, in particular, jump out as hot spots.”

The study showed that Miami has the nation’s highest cost-burden rate out of the 50 largest metro areas in the country. Over 64% of Miami’s households are considered cost burdened. Orlando also made the top of the national list, with over 60% of Orlando residents living cost burdened.

According to Apartment List’s study, the large percentage of Americans living cost burdened is driven by the cost of rent rising faster than income is. The number of cost-burdened renter households increased by 1.9 million from 2019 to 2022 and the number of unaffected households dropped by 957,000.