A new study from Florida Atlantic University, Florida Gulf Coast University and the University of Alabama ranked the most overvalued US rental markets. The researchers used past leasing data from Zillow's Observed Rental Index to statistically model historic trends from 2014 and determine where rents should be and compare those to current rents. The difference between the two is the premium renters are paying.

Perhaps not surprisingly given the migration to the Sun Belt states in recent years, the first five all are in the Sunshine State. Indeed, the researchers believe that rents have increased sharply in Florida during the pandemic due to robust demand from out-of-state transplants.

"Florida is a popular destination under normal circumstances, and it's even more desirable now because its pandemic policies strongly favored consumers and businesses," said Ken. H. Johnson, an economist in FAU's College of Business. "Landlords can charge exorbitant rents because if the existing tenants do not accept the new lease terms, other people will accept them quickly. This all points back to a persistent inventory shortage in rental units."

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