TAMPA, Fla. — Rent across the United States is nearing record highs; however, the opposite is true here in Florida and the Tampa Bay region.
This is according to a recent report from Redfin.com. Researchers said May 2024 was the second month in a row with nationwide asking rent increases, reaching highs not seen since October 2022 and only slightly below the record. The average rent in America climbed to $1,653 in May.
Washinton, D.C. reportedly saw the largest increase in rent prices compared to last year with an 11.1% higher rate. Four other metros also saw double-digit increases, Redfin's report said.
However, several Florida metros and other cities in the Sun Belt region actually had the largest year-over-year decreases.
Jacksonville for example saw a 10.1% decrease in May 2024 compared to May 2023. Miami and Orlando's metros also saw decreases at 4.2% and 4%, respectively.
But what about Tampa? While a smaller decrease compared to Jacksonville's, the year-over-year rate still dropped 5%.
Researchers say the reason rent prices are falling in the Sun Belt is partly because more apartments were built in the region than in other parts of the country due to demand brought by the number of people who moved here during the height of the COVID-19 pandemic.
Now that the housing boom fueled by the pandemic has largely ended, property owners aren't seeing that same demand from newcomers and rent prices are cooling down as a result.
“Demand from young renters remains high, as many of them are opting to stay put rather than contend with an increasingly unaffordable homebuying market,” Redfin Senior Economist Sheharyar Bokhari said in a statement. “But so far, rent price growth has been limited because there are enough new apartments to meet demand, even in the busiest time of year for the rental market.”
Average rent price across Tampa Bay
Redfin researchers say rent prices are cooling in the Tampa Bay region due to plenty of apartments and houses available and fewer people looking in the rental market.
So what can the "average" Florida renter expect to pay for an apartment or home? Looking at reports from Zillow and RentCafe, the average rent in the Tampa Bay area sits around $2,000. The further away from Tampa, St. Petersburg and Sarasota you go, the more likely prices will be lower.
Florida's housing market cooling down
The construction boom during the height of the pandemic in Florida included both new builds for apartment buildings and houses. Because of the surplus of homes and lessening demand from potential homebuyers, Florida's housing market is cooling faster than anywhere else in the U.S., Redfin said in a separate report.
North Port in Sarasota County is reportedly the fastest-cooling housing market in the nation right now.
The reason for the cooling housing market is believed to be in part tied to the frequency uptick of natural disasters in addition to the surge in new construction, skyrocketing insuring costs and the selling price of houses.
“Construction is booming in the wake of recent climate disasters, and there’s less demand to buy new homes as the region braces for another intense hurricane season," Redfin Senior Economist Elijah de la Campa said in a statement. "While that’s disappointing for sellers, who may have to part with their home for less money than they would like, a bigger pool of listings to choose from is good news for the region’s homebuyers. More supply is the best way to bring down prices and combat the housing affordability crisis buyers are facing today—and that’s exactly what’s happening in parts of Florida.”
