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New housing studies show prices, rent costs still rising in South Florida

'The cost of ownership has simply gone through the roof,' real estate economist says
Posted at 5:51 PM, Apr 27, 2022
and last updated 2022-04-27 19:48:03-04

WEST PALM BEACH, Fla. — The cost of living in paradise seems to keep on rising for home buyers and renters.

A new March report from shows the median rent from West Palm Beach to Miami now surpasses the New York area.

The $2,988 a month South Florida rent came in higher than the $2,750 figure for New York City.

RELATED: Miami bypasses New York City as least affordable housing market in US, according to report

"To get where New York is that's a little bit shocking," said Sasha Kraver, a real estate agent and renter in downtown West Palm Beach.

Sasha Kraver, a real estate agent and renter in downtown West Palm Beach
Sasha Kraver explains the high costs to live in downtown West Palm Beach.

Kraver said the cost of rent in downtown West Palm Beach can start at $3,000 a month for one-bedroom apartments downtown, and there is nothing below $2,500.

"Even if you go up to Jupiter and Palm Beach Gardens, it doesn't really go down too much," Kraver said.

For buyers, the home sales market isn't showing any signs of slowing, even as mortgage rates go above 5%.

"I think Florida is probably rising the fastest," said Ken Johnson at Florida Atlantic University, who oversees the Beracha and Johnson Housing Market Ranking.

Ken Johnson, Florida Atlantic University housing expert, April 27, 2022
Ken Johnson said Florida residents can expect to be paying for unaffordable housing for years.

Johnson said buyers in 99 out of 100 markets are still paying a high premium for homes during the buying boom, as much as 30% to 50% in many parts of Florida.

"Between the increasing price and rising mortgage rates, the cost of ownership has simply gone through the roof," Johnson said

Online realtor, Redfin also posted a report Wednesday saying many Sun Belt homebuyers need 40% more income than last year to afford a typical home.

In the West Palm Beach market, Redfin reports that buyers need 38.1% more income — or $77,000 — in order to manage an average monthly mortgage payment of $1,928.