No, it doesn’t cost more to rent in most Florida cities than New York City

ST. PETERSBURG, Fla. — The cost of living has skyrocketed in Florida.

Increased demand has seriously strained supply since the onset of the COVID-19 pandemic, causing rent and home prices to rise rapidly. It's accelerated a trend that's actually been happening for the better part of the past two decades.

Home values in Tampa Bay have jumped more than 200% since 2000, according to real estate brokerage firm Clever.

When it comes to renting, Tampa is considered one of the most competitive markets in the country, according to RentCafe, which found 96% of apartments are occupied.

But has the Sunshine State outpaced New York City when it comes to the price you have to pay to find a place to live as some have suggested, like Democratic gubernatorial candidate Charlie Crist?

THE QUESTION

Does it cost more to live in many Florida cities than in New York City?

THE SOURCES

• Florida Realtors Association
• George Ratiu, senior economist & economic research manager for Realtor.com
• Shelton Weeks, professor with Lucas Institute for Real Estate Development at Florida Gulf Coast University
• Florida Atlantic University Real Estate Initiative

THE ANSWER

No, median rent prices in Florida are not higher than in New York City, however, rent prices in many major Florida cities are considered some of the most overvalued in the nation.

WHAT WE FOUND

The cost of living has significantly increased in Florida from Miami to Tampa, according to data from Realtor.com.

Florida is in the top third tier for rent growth nationwide, Realtor.com senior economist & economic research manager George Ratiu told 10 Tampa Bay.

Median rent prices in the Miami-Fort Lauderdale-West Palm Beach metro area are up a whopping 45 percent over the previous year, according to May figures published by Realtor.com.

On average, renters in south Florida are paying $2,843 a month. In the Tampa-St. Petersburg-Clearwater metro, renters are similarly paying north of $2,000 a month, on average. That’s more than a 22 percent increase over this time last year.

Median rent prices in Orlando and Jacksonville are also up double digits year-over-year by 28 percent and 18 percent, respectively.

But those prices (while particularly close in south Florida) are still outpaced by median rent in the New York metro area where renters, on average, are paying $3,005 a month, according to the data from the Florida Realtors Association.

Data from earlier in the year shows south Florida median rent prices briefly surpassed New York City.

“When you look at rent in New York City, when you look at the cost of living in New York City, Florida remains much more affordable,” Ratiu said.

However, where Florida does outpace New York is in overvalued rental prices.

Using monthly rental data from Zillow, researchers at Florida Atlantic University, Florida Gulf Coast University and the University of Alabama have been tracking prices in the nation’s top markets to determine where renters are paying more than they statistically should be based on historic trends.

“We look at what we would expect to see in these markets if they expanded along the same pathway they have historically, and when we see deviations from that, that's what we refer to as overpricing or underpricing,” explained Shelton Weeks, the director of the Lucas Institute for Real Estate Development at Florida Gulf Coast University.

Eight of the 15 most overvalued cities in the U.S. currently are in Florida, according to their ranking, with Miami, Fort Myers and Tampa Bay topping the list.

1. Miami-Fort Lauderdale: 22.7% premium
2. Fort Myers: 20.4% premium
3. Sierra Vista, Ariz.
4. Sarasota-Bradenton: 17.8% premium
5. Tampa: 17.5% premium

Comparably, New York City ranks 38th where rent is considered to be overvalued by roughly 11 percent.

Separate data on home price overvaluation in the top 100 U.S. housing markets shows buyers in the Tampa Bay area are paying some of the highest premiums in the nation with Tampa, Lakeland and Sarasota-Bradenton ranking in the top 15. New York ranks 97th.