Florida's affordable rentals vanish amid luxury apartment boom
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Florida's affordable apartments are disappearing as luxury rentals multiply, according to Harvard researchers.
Why it matters: Renters already burdened by high costs have fewer low-priced options to choose from.
By the numbers: Over the past decade, units in Florida renting for under $1,000 a month (adjusted for inflation) fell by around 60%, per a report by Harvard's Joint Center for Housing Studies.
- Meanwhile, a building boom focused on upscale apartments helped drive a fivefold increase in the number of units costing at least $2,000 a month.
Between the lines: Homebuying is out of reach for many. More people are renting, which has kept rents high even as hikes ease.
- Add to that high prices for land, building materials and labor. "To be profitable, most of these [new] units must command steep rents," researchers wrote in the report.
Reality check: The surge in high-end apartments can still benefit lower-income renters, the researchers noted.
- When higher earners move up, older, cheaper units may become available.
What we're watching: With less new construction happening lately, rent hikes could ramp up again, further straining budgets.