Rental market in Florida could be settling down. Will housing get cheaper?

BOCA RATON, Fla. – On Tuesday, Florida Atlantic University released a new study showing that the state’s rental markets might be stabilizing.

In a release, FAU officials announced that rents in places like Palm Bay and Jacksonville have recently gone below their long-term trends.

Meanwhile, the data indicates that other major cities in the state — such as Cape Coral, Orlando and Deltona — saw only slight increases in rent prices, with price increases gradually slowing down.

As such, it could be a sign that many renters statewide could soon see lower prices.

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“While these measures are small, they are a positive sign of where the rental market could be heading in the future,” said Dr. Ken Johnson, a real estate economist with FAU’s College of Business. “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 recent years, Florida has been flooded by people moving from other states and countries, causing demand — and thus housing costs — to rise drastically. Combined with huge bouts of inflation in the wake of the COVID-19 pandemic lockdowns, it’s been a tough time for many.

But now that the number of people coming into Florida is slowing down, it could be a good sign for those struggling to pay rent.

That trend isn’t showing up everywhere in the state, though.

“South Florida, however, remains a problem child in the state in terms of rent growth,” FAU researcher Dr. Shelton Weeks explained. “Premiums in the Miami metro area are the highest among measured metros in the state at 4.19%.”

Regardless, the study says that the “days of rapidly rising rents are probably over,” but the new higher rent rates will still cause affordability issues while incomes struggle to catch up.

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