Florida added 211, 196 new residents from July 1, 2020 to July 1, 2021 to a population of 21,781,128, according to U.S. Census Data. Florida ranks number 2 in the country for most residents gained during that period of time.
Housing experts believe the population surge occurred due to Florida’s lower taxes and warmer climate as well as the loose pandemic restrictions and a shift to remote work. The problem is, housing has not grown at the same rate, leaving a deficit in home availability. The shortage is causing rent prices to skyrocket to ridiculous levels.
Across the country, rent has gone up an average of 19.8%. However, rent prices across Florida rose to about 30% in the past year. In some areas it has increased even more. New data released from Realtor.com showed rent in South Florida rose about 50% compared to last year.
Population growth is not the only factor driving up rents. Many factors are responsible for astronomical rent prices including, a nationwide housing shortage and extremely low rental vacancies. Rising property taxes as well as rising insurance premiums are also forcing would be homebuyers to rent.
On top of that, the increasing presence of investors is also contributing to the rise of rent. Potential homebuyers are competing with real estate investors making attractive all-cash offers. According to online real estate company Redfin, a record 18.2% of home purchases in the third quarter of 2021 were made by businesses or institutions.