According to an article by the Sun Sentinel, renters in South Florida experience some of the highest rent burden in the state.
31% of renters all over Florida spend at least half of their income paying for rent. This is the most out of any other state in the country.
Rent prices in South Florida make Miami-Dade, Palm Beach, and Broward counties see even larger percentages. In those areas of South Florida, 36 percent of renters spend at least half of their before-tax income on rent and utilities. These statistics come from an analysis by Enterprise Community Partners, a nonprofit housing organization based in Columbia, Maryland.
This rent problem occurs because South Florida is fairly low-wage economy with recent real estate development catering to upper classes. Supply of land is decreasing, so developers have to build luxury buildings in order to get a profit.
“The middle of the market is really getting squeezed,” said Andrew Jakabovics, senior director of policy development and research for Enterprise. Enterprise promotes affordable housing through a Make Room campaign.
Experts say that consumers should not be spending more than 30% of their income paying for housing.
“These high levels of rents can’t be sustained for a long period of time without having a major impact on the market,” said L. Keith White, president of Reinhold.
So, where is the solution? Jaimie Ross, president of the nonprofit Florida Housing Coalition, said in a statement that lawmakers need to devote the entire $324 million in state and local housing trust funds to affordable housing programs.
“With the recovery of the real estate market, we cannot afford to have one penny of the state and local housing trust funds used for purposes other than affordable housing,” she said.
The federal government gives subsidies to affordable housing developers, allowing them to build units for citizens meeting certain income qualifications.
With any questions regarding renting or buying in the Miami area, contact RE/MAX Paradise today.