TAMPA, Fla. — As the cost of living continues to soar across the bay, a new study shows that renters in Tampa need to make over $80,000 to afford the average rent.
Researchers at FAU compiled the Waller, Weeks and Johnson Rental Index that showed Tampa was the 18th most expensive and overpriced metro area in the study with Miami coming in 8th and Orlando in 19th.
The study shows that the average rent in Tampa is $2,118.75.
In order to afford the average rent, Tampa residents need to make around $84,750.12, however, they would still be considered rent-burdened.
The Department of Housing and Urban Development (HUD) defines rent-burdened families as those “who pay more than 30 percent of their income for housing” and “may have difficulty affording necessities such as food, clothing, transportation, and medical care.”
A severe rent burden is defined as paying more than 50% of one’s income on rent.
Considering opting for buying a house instead of paying rent? Well, good luck.
A report released last week by Florida Atlantic University shows that Florida continues to have housing markets that are "significantly" overvalued, even with prices starting to come down.
Data shows that as of the end of April, Tampa homebuyers are paying an average of $367,956 for a home that typically would be expected to sell for only an average of $255,552. That's nearly a 44% premium — meaning prices are "above the area's long-term pricing trend that buyers must pay."
“Florida is so overvalued almost certainly because of the increased demand to live here combined with a shortage of available housing units,” said Ken H. Johnson, Ph.D., an economist in FAU’s College of Business. “There are just not enough roofs to go around, given our population and Florida’s stature as a prime destination.”
Researchers did express concern that despite Florida's housing prices falling similarly to other states across the U.S., many expect housing prices and rents to remain high. High enough to outpace local annual incomes, FIU Dr. Eli Beracha said.
10 Tampa Bay's Claire Farrow contributed to this article.
