Report shows cost to rent has skyrocketed
Nationwide, the cost to rent a home has increased 15.04 percent. In South Florida, the cost has increased 16.47 percent.
The NAR said the increase is a simple case of supply and demand.
“South Florida had the most foreclosures and short sales,” said Matt Halperin of the Realtors Association of the Palm Beaches. “So people who originally owned homes have gone into the rental market.”
Halperin said with more people looking to rent, the price to rent has gone up.
And those numbers don’t tell the whole story.
During the same five years, income in the U.S. has increased 11.17 percent.
In Florida, though, income has only increased 0.71 percent.
That means people are making the same amount of money but paying more in rent, therefore finding it hard to save money to buy a home.
That’s the situation Jennifer Sell of Boynton Beach finds herself in.
“It’s very disappointing,” Sell said. “Being at the age that I’m at, I’m going to be 36 in September, you’d think at this point I’d be able to be in my own home or already have one by now.”
Halperin said he believes there is good news on the horizon.
As more time passes, those who suffered through foreclosures will see an improvement in their credit rating and will once again be able to buy a house, Halperin said.
With them no longer looking to rent, the price to rent could drop.