{"id":4360,"date":"2022-05-20T08:49:20","date_gmt":"2022-05-20T12:49:20","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=4360"},"modified":"2024-09-08T09:11:22","modified_gmt":"2024-09-08T13:11:22","slug":"the-florida-housing-market-is-now-the-most-expensive","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/the-florida-housing-market-is-now-the-most-expensive\/","title":{"rendered":"2022 Florida Housing Now Most Expensive in the United States!"},"content":{"rendered":"\n<p>According to a recent <a href=\"https:\/\/www.cbsnews.com\/news\/florida-least-affordable-state-us-miami-tampa-orlando-naples\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">CBS report<\/a>, Florida is now the most expensive place to live in the U.S. This comes not long after <a href=\"https:\/\/www.realtor.com\/research\/february-2022-rent\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">research<\/a> by Realtor.com showed that Miami was the least affordable city.<\/p>\n\n\n\n<p>What\u2019s going on? Has Florida\u2019s real estate market really surpassed those of NYC, Chicago, San Francisco, and other metro areas?<\/p>\n\n\n\n<p>Rent has been rising by the double digits <a href=\"https:\/\/www.washingtonpost.com\/business\/interactive\/2022\/rising-rent-prices\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">nationwide<\/a>, but rent increases have been most pronounced in the Sunshine State. For example, monthly rents in Naples, Sarasota, and Tampa are all up between 29% and 39% in the past two years!<\/p>\n\n\n\n<p>In this article, we\u2019ll explore why Florida has been hit by rent hikes the most and what the future holds for its real estate market moving forward.<\/p>\n\n\n\n<p>Let\u2019s get started!<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/the-florida-housing-market-is-now-the-most-expensive\/#What_Made_Florida_the_Most_Expensive_Housing_Market\" >What Made Florida the Most Expensive Housing Market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/the-florida-housing-market-is-now-the-most-expensive\/#What_Has_the_Impact_Been_So_Far\" >What Has the Impact Been So Far?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/the-florida-housing-market-is-now-the-most-expensive\/#What_Will_Happen_to_Floridas_Real_Estate_Market_Next\" >What Will Happen to Florida\u2019s Real Estate Market Next?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Made_Florida_the_Most_Expensive_Housing_Market\"><\/span>What Made Florida the Most Expensive Housing Market?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Part of what\u2019s fueling Florida\u2019s real estate market is its rapid <a href=\"https:\/\/worldpopulationreview.com\/states\/florida-population\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">population growth<\/a>. Over 200,000 people are added to the state\u2019s population each year!<\/p>\n\n\n\n<p>Most recently, the state experienced a surge of new residents from pandemic relocations. People who started working from home realized they could live wherever they want, and Florida has a lot to offer:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Beautiful weather<\/li><li>A booming economy<\/li><li>Zero income tax and low property taxes<\/li><li>And a relatively low cost of living (up until recently)<\/li><\/ul>\n\n\n\n<p><strong>Between 2020 and 2021 alone, 300,000 people moved into Florida.<\/strong> Now it\u2019s growing faster than every other state but Texas.<\/p>\n\n\n\n<p>Even big businesses see the appeal. Goldman Sachs, Elliott Management, and Virtu Financial all decided to relocate to Florida in the last few years.<\/p>\n\n\n\n<p>Naturally, the <a href=\"https:\/\/propertyonion.com\/education\/10-best-places-to-invest-in-real-estate-in-florida\/\" target=\"_blank\">increased demand for Florida real estate<\/a> from out of state is driving up housing costs. And since Florida law prohibits rent control, which could put a cap on rent hikes, rents continue to skyrocket.<\/p>\n\n\n\n<p>Another reason for the expensive Florida real estate market is the nationwide <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/housing-shortage-tracker\" target=\"_blank\">housing shortage<\/a>. Pandemic supply chain issues, a lumber shortage, and a construction worker shortage have all slowed down the building of new homes, leaving the U.S. <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.google.com\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwiMsofMnbr3AhUYDkQIHQn6A00QFnoECCEQAw&amp;url=https%3A%2F%2Fwww.npr.org%2F2022%2F03%2F27%2F1089047745%2Fin-the-u-s-theres-a-historic-shortage-of-homes-around-3-million-short&amp;usg=AOvVaw2LXjmgyqepbY5yIYc2yjzJ\" target=\"_blank\">about 3 million homes short<\/a> of demand.<\/p>\n\n\n\n<p>When you combine all the factors above, it\u2019s easy to see how Florida quickly became the most expensive housing market in the U.S. For a long time, residents enjoyed relatively low housing costs, but savvy remote workers and investors have caught on and driven up prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Has_the_Impact_Been_So_Far\"><\/span>What Has the Impact Been So Far?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>So far, people working in the tourism and service sectors have been hit by the expensive Florida real estate market the hardest. Lower-income families working in the cities are spending upwards of 60% of their income on housing when experts consider anything over 30% unaffordable.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>According to Realtor, \u201cthe median rent for a typical 0-2 bedroom unit in Miami, Florida is twice as high as the estimated maximum affordable rent for the median household.\u201d<\/p><\/blockquote>\n\n\n\n<p><strong>Not surprisingly, some residents are leaving Florida to move to more affordable states. <\/strong>After living in the Sunshine State for 30 years, 70-year-old Michele DeMoske-Weiss plans to move to Washington state or Pennsylvania to be closer to her children. &#8220;I&#8217;m leaving as soon as I can get out,&#8221; <a href=\"https:\/\/www.cbsnews.com\/news\/florida-least-affordable-state-us-miami-tampa-orlando-naples\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">she said<\/a>.<\/p>\n\n\n\n<p>But moving isn\u2019t feasible for many who work in the service or tourism industries. These jobs can\u2019t be done remotely, and moving long distance costs a lot of money that many families simply don\u2019t have. They\u2019re stuck paying the higher rent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Will_Happen_to_Floridas_Real_Estate_Market_Next\"><\/span>What Will Happen to Florida\u2019s Real Estate Market Next?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Eventually, Florida\u2019s hot real estate market will be due for some correction. Rent increases could slow down gently or the entire market could crash. We might even see Florida turn into a swanky real estate market like that in California. Only time will tell.<\/p>\n\n\n\n<p>For now, all we know is that with the rising housing costs, some renters will be squeezing their budgets to get by or moving away, and the migration into Florida from other expensive areas will most likely slow down.<\/p>\n\n\n\n<p>If you\u2019re looking to take advantage of Florida\u2019s real estate market while it\u2019s hot, check out PropertyOnion.com\u2019s <a href=\"https:\/\/propertyonion.com\/property_search\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">property search map<\/a>, where you can find plenty of foreclosures and tax deed properties to invest in at low prices.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a recent CBS report, Florida is now the most expensive place to live in the U.S. This comes not long after research by Realtor.com showed that Miami was the least affordable city. What\u2019s&hellip;<\/p>\n","protected":false},"author":41,"featured_media":4365,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[348,69,419,376,364,192,392],"class_list":["post-4360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-348","tag-florida","tag-florida-real-estate","tag-housing-market","tag-inflation","tag-investors","tag-market-predictions"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/4360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=4360"}],"version-history":[{"count":4,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/4360\/revisions"}],"predecessor-version":[{"id":4366,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/4360\/revisions\/4366"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/4365"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=4360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=4360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=4360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}