Affordability issues rise in Florida as rents reach 30% of incomes

FLORIDA – New rental data shows affordability issues are on the rise in Florida and across the nation as Americans spent 30% of their monthly budgets on rents in February on average, according to the Realtor.com^® Monthly Rental Report released today.

February rents accounted for an even higher portion of household incomes in 14 of the 50 largest U.S. markets, with the list of least affordable areas dominated by Florida metros like Miami and Tampa, and Sun Belt metros such as San Diego, Calif.

“Whether it’s rent or mortgage payments, the general rule of thumb is to keep monthly housing costs to less than 30% of your income. And with rents surging nationwide, February data indicates that many renters’ budgets may be stretched beyond the affordability limit,” said Realtor.com^® Chief Economist Danielle Hale.

In February, the U.S. median rental price hit a new high of $1,792 and soared by double-digit percentages (+17.1% year-over-year) for the seventh month in a row, according to Realtor.com.

Among unit sizes, studio rents increased at the fastest annual pace, up 17.1% (+$215) to a median of $1,474.

Larger unit rents also posted double-digit gains over February 2021: 1-bedrooms, up 16.4% (+$232) to $1,648; and 2-bedrooms, up 16.2% ($278) to $2,002, said Realtor.com.

In Miami, the median rental price spiked 55.3% year-over-year in February, bringing it to the top of February’s least affordable markets.

Although buying a starter home is more affordable than renting one in Miami, the local for-sale home market is also exploding. Compared to February 2021, listing prices were up 31.6% in Miami, which jumped 25 spots on the latest Realtor.com^® Hottest Markets Ranking.

February 2022 Rental Metrics – National

Unit Size	Median Rent	Change over Feb. 2021	Change over Feb. 2020
Overall	$1,792	17.1% ($261)	18.8% ($283)
Studio	$1,474	17.1% ($215)	11.7% ($154)
1-bed	$1,648	16.4% ($232)	17.1% ($241)
2-bed	$2,002	16.2% ($278)	21.2% ($350)

Year-over-year rent growth in February 2022 was four times higher when compared to March 2020, before the onset of COVID, highlighting limited supply relative to demand. The acceleration in rents is largely driven by a growing segment of young households, many of whom are turning to renting in the face of the for-sale inventory crunch, record-high listing prices, and climbing mortgage rates

Least Affordable Rental Markets (Feb. 2022)

Rank	Metro Area	Median Rent	Rental Share of Income	Rental Share of Income YoY	Maximum Affordable Rent
1	Miami, Fla.	$2,929	59.5%	37.8%	$1,476
2	Los Angeles, Calif.	$2,993	46.0%	39.1%	$1,952
3	Riverside, Calif.	$2,678	45.9%	40.5%	$1,752
4	Tampa, Fla.	$2,098	44.7%	33.1%	$1,407
5	San Diego, Calif.	$3,008	42.9%	35.0%	$2,105
6	New York, N.Y.	$2,725	40.9%	36.7%	$1,997
7	Las Vegas, Nev.	$1,600	39.6%	30.9%	$1,213
8	New Orleans, La.	$1,725	37.2%	32.5%	$1,392
9	Orlando, Fla.	$1,843	36.7%	26.8%	$1,506
10	Phoenix, Ariz.	$1,855	34.7%	27.9%	$1,628
11	Sacramento, Calif.	$2,029	31.8%	28.6%	$1,912
12	Memphis, Tenn.	$1,385	31.4%	25.3%	$1,324
13	Cleveland, Ohio	$1,378	30.7%	29.2%	$1,345
14	San Francisco, Calif.	$2,970	30.5%	28.2%	$2,921

Most Affordable Rental Markets (Feb. 2022)

Rank	Metro Area	Median Rent	Rental Share of Income	Rental Share of Income YoY	Maximum Affordable Rent
1	Kansas City, Mo.	$1,216	19.9%	18.2%	$1,832
2	Oklahoma City, Okla.	$923	21.1%	19.0%	$1,314
3	Denver, Colo.	$1,921	21.9%	19.0%	$2,631
4	St. Louis, Mo.	$1,299	22.3%	20.7%	$1,749
5	Washington, D.C.	$2,078	22.7%	20.4%	$2,746
6	Indianapolis, Ind.	$1,215	23.0%	20.7%	$1,587
7	Louisville, Ky.	$1,200	23.0%	20.5%	$1,564
8	Minneapolis, Minn.	$1,558	23.0%	22.1%	$2,028
9	Houston, Texas	$1,420	23.4%	21.1%	$1,823
10	Raleigh, N.C.	$1,561	23.5%	19.9%	$1,990