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Competitive rental market drives prices skyward

Palm Beach Gardens had biggest rent increase in USA
Rent
Posted at 4:54 PM, May 25, 2021
and last updated 2021-05-25 17:40:28-04

BOCA RATON, Fla. — A competitive housing market has impacted rent prices in South Florida.

A Florida Atlantic University analysis found homes are selling for almost 13% more than they should in South Florida.

"It is crazy right now," said Realtor Christopher Tapia.

He said it's been hard finding places for people who want to buy and rent, and his clients are paying 30-40% more on properties.

"So that one $1,200 condo today is now around $1,700-$1,800 a month," said Tapia.

A study by Insurify found four cities in Palm Beach County have some of the highest rent in the country.

Data based off rent increases from September 2020 to February 2021, the company found Palm Beach Gardens had the highest rent increase in the country.

The average rent in Palm Beach Gardens is $2,158 and increased 10.55%.

Insurify also found Wellington had the third highest rent with an 8.28% increase to an average of $2,262.

Boca Raton is ninth with a 6.85% increase and $2,074 average rent, and Delray Beach was 20th on the list with an increase of 5.63% and average $1,858 rent price.

FAU economics professor Christopher Boudreaux said there aren't any short-term fixes for the high rent price. There is little supply with the housing market being as crazy as it is.

"Eventually, the supply will come, but in the short-term, it is pretty fixed," said Boudreaux.

Tapia said his best advice to a renter is to be prepared to move when they find a property.