Good news for Florida renters: affordability is improving! According to a recent Redfin report, major metro areas like Tampa and Jacksonville saw some of the most significant year-over-year affordability gains in 2024. This trend is part of a broader national shift where rents have stabilized, and wages have risen, making it easier for renters to afford housing.
Across the U.S., the median asking rent for an apartment is now $1,592, requiring an annual income of $63,680 to be considered affordable. This marks a 0.4% decrease from last year and a 6.4% drop from the peak of $1,700 in August 2022, when renters needed to earn nearly $68,000 to keep up with costs. While rents have remained stable, renter incomes have grown significantly, with the median income for renters reaching $54,752 in 2024—up 5.3% from 2023 and 35.2% from pre-pandemic levels in 2019.
Despite this positive trend, renters still earn, on average, 14% less than what is needed to afford the typical apartment. However, the affordability gap is narrowing, the smallest it’s been in five years.
In Florida, Tampa and Jacksonville stood out as cities where renters experienced significant relief. The income required to afford a typical apartment dropped by:
These improvements are largely due to an increase in apartment construction, which has helped balance supply and demand. This trend mirrors what’s happening in other Sun Belt cities like Austin, where rental affordability improved the most in 2024.
According to Redfin Senior Economist Sheharyar Bokhari, rental affordability is expected to continue improving due to two key factors:
However, Bokhari notes that the affordability gap between renting and buying is expected to grow in 2025. With home prices rising and mortgage rates remaining high, many potential homebuyers—especially younger generations—may opt to continue renting for longer.
While Florida’s affordability has improved, some metro areas remain challenging for renters. The least affordable cities included:
On the other end of the spectrum, cities like Austin, Houston, and Dallas saw strong renter affordability, with incomes exceeding what’s needed to afford a typical apartment.
For renters in Florida, this is an encouraging shift that could lead to better housing opportunities. For real estate investors and property managers, understanding these affordability trends is crucial. Markets like Tampa and Jacksonville may see increased rental demand, making them attractive locations for investment properties.
With rental affordability improving in key Florida cities, now might be a great time for renters to explore new opportunities and for investors to consider expanding their portfolios.
Are you considering renting or investing in Florida real estate? Contact us today to learn more about the latest market trends and opportunities!
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