Rental Market Analysis: Florida Real Estate in 2024Dec 31, 2023
Happy New Year! 🎉
2024 is setting up to be a big one!
Mortgage rates have fallen over 1% are down to where they were last May. 🥳
There's almost certainly going to be election year shenanigans, so it' advisable to make real estate moves prior to the impending drama. 🎭
Let's take a look at a hot topic these days: rent.
Here are the facts...
Will Renters Get A Break?
There's three main options for housing: buying, renting, or crashing at mom & dads.
This week we dive into the stats on rent throughout Florida to see how that option is evolving.
The map above shows the average change in rent from November last year to November this year for all property types.
The first takeaway is that rent is up in all metros in Florida according to Zillow. 😲
A handful of metros are essentially flat (less than 1% increase), yet this illustrates the point that rent rarely goes down.
In fact, I bet if you think about your local market, you'd agree that most non-apartment rentals are below market.
These mom & pop rentals have room to raise rents because they've been lower for a long time.
Speaking of apartments, we know that multifamily construction has been on fire over the past few years as builders looked to capitalize on the housing shortage throughout the state. 🏗️
The increase in supply along with people's desire to have their own space has created a gap between single family rentals and apartments. ⚖️
The chart on the left is single family rent growth and the one on the right is multifamily:
Green means increasing rents while yellow and red mean declining rents compared to last year. 🎨
You can see based on the colors that apartments are under much greater price pressure than single family homes, which are continuing to increase rents.
While the average rent change in Jacksonville is just +0.6% when looking at all property types, single family rents are up ⬆️ +2.2% while multifamily is down ⬇️ -1.1%.
The primary goal of any real estate professional should be to help their clients accomplish their housing goals. 🎯
Understanding the rental market is a key component to this process.
This data helps us to understand the market and manage expectations for clients looking to rent at this time.
For the best "deal" on a rental in 2024 clients can get a cheaper rent and more incentives going multifamily in most markets (except Tallahassee which is up 7% either way). 👍
If your clients are looking to purchase an investment property in. 2024, they should realize that the general stats could be misleading. Purchasing a single family home to rent out could be profitable and a growth opportunity. 💡
Further, the rent today matters, but it's important to consider what the growth rate has been and look over the next few years to see if your cashflow might be.
It's a clean slate.
Let's get out there and help people accomplish their goals! 🚀
Dr. Alex Stewart
Looking for more? Here's 3 ways to dive deeper:
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- 📊 Schedule a live presentation: Want to learn in person? I offer the MarketPulse 360 presentation that connects all the dots (national to local) so you get a comprehensive breakdown of today's market. It's 2 hours of beautiful charts designed to give you all the major trends you need to know about and address the most common questions in the market. You'll walk out feeling more confident, with resources to use in your business, and a level above the rest of the Realtors who are wandering around blindly.
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