#U.S #Rent #Spikes #Pressing #Sun #Belt #West
BOCA RATON Fla., Oct. 05, 2022 (GLOBE NEWSWIRE) — Rent spikes have developed in the Sun Belt and the West, a pattern clearly driven by local supply and demand issues, according to the latest analysis by researchers at Florida Atlantic University and two other schools.
Florida continues to dominate the list of largest premiums and largest annual rent increases, as of the end of August. Miami is No. 1 in both categories, with renters paying 21.98 percent above the long-term rental trend and 21.92 percent more than they did a year ago. Fort Myers previously had the largest year-over-year rent increase but slipped to No. 2 in August.
Markets in Arizona, North Carolina, Tennessee, Texas and Utah also rank near the top of both lists.
But other metros aren’t facing a rental crisis. The lowest year-over-year increases are Fresno, California (3.50 percent); Spokane, Washington (4.20 percent); and Minneapolis (5 percent). Those levels fall in line with traditional annual increases of 3 to 5 percent.
The full rankings can be found here.
“In areas around the country where demand overwhelms supply, renters are getting hit with near-record premiums and annual increases,” said Ken H. Johnson, Ph.D., an economist in FAU’s College of Business. “In markets with more of a balance between supply and demand, rents are relatively stable.”
Johnson, Shelton Weeks, Ph.D., of Florida Gulf Coast University, and Bennie Waller, Ph.D., of The University of Alabama, use leasing data from Zillow’s Observed Rental Index to determine existing rents and statistically model historical trends from 2014. The Waller, Weeks and Johnson Rental Index covers the entire rental stock of homes and apartments.
Recent rent increases in Florida, while still elevated, are showing signs of slowing, said Weeks, of FGCU’s Lucas Institute for Real Estate Development & Finance. He noted that most of metro Miami’s 21.92 percent year-over-year increase occurred between September…