FAU report shows Florida rental rates stabilizing, though South Florida remains an outlier

by | Jun 4, 2024

A real estate report published by Florida Atlantic University reveals that rental markets in most major Florida cities are stabilizing, with many areas offering rents at or below long-term trends, although South Florida remains an outlier with the highest rent premiums.

A new real estate report published on Tuesday by Florida Atlantic University (FAU) and collaborating researchers indicates that rental markets in most major Florida cities are showing signs of stabilization, with many areas offering rental rates at or below long-term pricing trends.

Researchers found that cities like Palm Bay and Jacksonville are offering rental rates at discounts compared to historical norms. Specifically, Palm Bay rents are at a -0.39 percent discount, with typical units renting for $1,979.10, while Jacksonville rents are at a -0.15 percent discount, with average units renting for $1,743.66. According to Ken H. Johnson, Ph.D., a real estate economist with FAU’s College of Business, these discounts, though small, are indicative of a positive trend in the rental market’s direction.

“While these measures are small, they are a positive sign of where the rental market could be heading in the future,” he said. “These Florida cities are renting at a discount compared to their historical averages and others appear to be heading in that direction, suggesting that rental markets around the state are stabilizing.”

In addition to the discounts in Palm Bay and Jacksonville, other Florida cities are showing minimal premiums close to historical trends. Deltona has a 0.34 percent premium, Orlando 0.35 percent, Cape Coral 0.48 percent, Lakeland 0.66 percent, North Port 0.79 percent, and Tampa 1.01 percent.

However, South Florida remains an outlier in this trend. The Miami metro area continues to exhibit the highest rent premiums in the state, with a 4.19 percent premium, largely attributed to the region’s rental market remaining problematic in terms of rent growth, diverging from the broader trend observed across other Florida cities.

The Waller, Weeks, and Johnson Rental Index, part of FAU’s Real Estate Initiative, was used for this analysis. The index examines rent levels in the 100 most populated metropolitan areas in the United States, comparing current rents to statistically modeled historical prices. The study also measures average yearly and monthly rent increases and the income needed for a typical household to avoid paying more than 30 percent of their income on rent.


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