Apartment rent in most Florida cities are trading either at a discount compared to long-term pricing trends or premiums of less than 1%, according to researchers at Florida Atlantic University and two other schools. Just a year ago, nearly all the measured Florida metros were at double-digit premiums.
The Waller, Weeks and Johnson Rental Index, a part of FAU's Real Estate Initiative, examines where the average rent is in the 100 most populated metropolitan areas in the United States and compares it to where rents should be based on statistical modeling of historical rental prices.
Rents in Palm Bay and Jacksonville are below their long-term pricing trends, end of April data from the Waller, Weeks and Johnson Rental Index shows. In Palm Bay, rents are at a -.39% discount with the typical unit in the area renting for $1,979.10. For Jacksonville, rents are at a -.15% discount with the average unit renting for $1,743.66.
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"These Florida cities are renting at a discount compared to their historical averages and others appear to be heading in that direction, suggesting that rental markets around the state are stabilizing," said Ken H. Johnson, real estate economist with FAU's College of Business.
Premiums in other measured Florida cities are edging back toward historical norms. Rents are at a .34% premium in Deltona; .35% premium in Orlando; .48% premium in Cape Coral; .66% premium in Lakeland; .79% premium in North Port; and 1.01% premium in Tampa.
Meanwhile, premiums in the Miami metro area are the highest among measured metros in the state at 4.19%.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
