Much has been made about the struggles of homebuyers in the past two years - particularly here in Florida where the Great Migration has brought untold numbers of new residents to the Sunshine State. Real estate cycles are typically like a pendulum, with a swing in one direction affecting other groups within the market. With demand spiking in Florida and the buying pendulum reaching maximum capacity, while at the same time inventory is plummeting and prices are soaring, a new market has seemingly gotten out of control - the rental market. According to FloridaRealtors.org, our Sunshine State has now become the most difficult place to rent in the entire country!
How bad has it gotten for renters? Four of the top ten markets across the country with the most intense rental competition are in Florida, as reported by the Florida Association of Realtors. The following Florida markets made the list:
and (not surprisingly)
The fierce competition in these markets has led to absolutely skyrocketing rental prices reaching record-breaking levels. In many cases, even with the insanely high costs, rentals are only lasting weeks - or even days - on the market. In many cases, rentals are going sight-unseen as buyers try to outrace and outpace the masses of other renters in their respective markets.
With these unprecedented and intense conditions for renters across the state, it seems that the pendulum is poised to swing again. What does that mean for the Florida real estate market? Several things could happen as a result. With rentals scarce and prices steep, many renters with buying-power may be forced into buying. But what about those without the means or qualifications required to purchase? Or those that cannot afford the astronomical listing prices popping up across the state? Or renters who get beat out for properties time and time again? In all likelihood, renters will be forced to explore alternative areas and expand their search areas further. This may open the door to new markets to further saturate the state of Florida, while providing new opportunities for renters, as well as both buyers and sellers across the state. This may especially benefit the Florida Keys real estate market. With both of our neighbors to the north - Broward and Miami-Dade counties - in the top 10 most competitive markets renters and buyers may have no choice but to expand their search area to include our shores. A lack of affordable rentals in the area may drive the home buying market into overdrive here in the Keys. Now is a great time to buy a home in the Florida Keys before the market shifts again.
At Broker’s Edge Realty, we can help you find the right property to purchase to capitalize on this unique market!