Renters are paying significantly more than expected based on historical trends in individual markets.
The average monthly rental rate in the US was $1,979 in May—9.85 percent above what renters should be paying based on past market trends, according to Zillow's Observed Rental Index.
Significant rent increases remain the norm across Florida and beyond, and the Federal Reserve's recent interest rate hike is unlikely to improve the landscape for cash-strapped renters, according to researchers at Florida Atlantic University and two other schools.
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Miami Continues Standing as Most Overvalued
The Waller Weeks & Johnson Rental Index, a collaboration started this year by FAU, The University of Alabama and Florida Gulf Coast University, determined that metro Miami was the nation's most overvalued rental market in May
In Miami, renters were paying a premium of 22.7 percent, making it the top market for the third consecutive month.
Five other Florida markets also are in the top 10: No. 2 Fort Myers (20.41 percent); No. 4 Bradenton/Sarasota (17.86 percent); No. 5 Tampa (17.52 percent); No. 7 Port St. Lucie (15.89 percent); and No. 9 Lakeland (15.36 percent)
Markets outside Florida in the top 20 include: No. 6 Knoxville, Tenn. (16.92 percent); No. 10 Bakersfield, Calif. (15.33 percent); No. 16 Phoenix (13.76 percent); No. 19 Las Vegas (13.20 percent) and No. 20 Austin (13.02 percent).
Bennie Waller, Ph.D., said persistent inventory shortages in multifamily housing is what is leading to year-over-year rent increases across the country.
"Until we can build units faster, the nation's rental crisis will continue," he said.
The report also suggested smaller increases are in store for the vast majority of the 107 markets tracked, though the timing is uncertain.
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