Florida Rental Market Study Reveals Growing Affordability Crisis for Households

Florida’s rental market is under pressure. A new statewide study from the University of Florida’s Shimberg Center for Housing Studies found that rental demand continues to exceed supply, pushing costs higher and leaving more households struggling to afford basic housing. The 2025 Statewide Rental Market Study paints a clear picture of a market where population growth, rising rents, and limited affordable inventory are colliding.

Florida Added One Million Households But Affordable Units Lagged

Between 2019 and 2023, Florida added more than one million households, including nearly 200,000 new renter households. During the same period, the state gained over 240,000 multifamily units. However, the supply of lower-cost rentals did not keep pace with demand. Median rent climbed from $1,238 to $1,719, a 39% increase in just four years.

Florida’s population grew by more than 1.3 million residents between 2020 and 2023, making it one of the fastest-growing states in the country. This growth has fueled demand across all housing types, but the rental sector has absorbed much of the pressure as homeownership remains out of reach for many due to elevated home prices and higher mortgage rates.

Employed Renters Still Face Cost Burdens

The study found that 79% of renter households in Florida have at least one employed adult. Yet nearly 905,000 low-income renter households now spend more than 40% of their income on rent, putting them at high risk of housing instability. This underscores a widening gap between wage growth and housing costs.

James Moore’s real estate advisory team works with property owners and developers to assess market conditions, manage operating costs, and structure investments in ways that support long-term financial performance.

Older Renters Account for Growing Share of Cost-Burdened Households

Renters age 55 and older now represent nearly 40% of cost-burdened households in Florida. This reflects a shift in the rental market, where older residents are increasingly relying on rental housing rather than homeownership. Rising property taxes, insurance costs, and maintenance expenses have made homeownership less feasible for some older Floridians, pushing them back into the rental market at a time when affordability is already strained.

The median age of first-time homebuyers reached 38 in 2024, the highest on record, indicating that younger and older households alike are facing barriers to homeownership.

Housing Instability and Homelessness Rising Across Florida

The report also documented rising housing instability. An estimated 29,848 individuals are currently homeless in Florida, including 23,799 sheltered and unsheltered individuals and 6,049 unaccompanied youth living in doubled-up arrangements, hotels, or motels. An additional 44,234 families with children are experiencing homelessness, including 2,387 sheltered and unsheltered families and 41,847 families living in temporary or shared housing.

These numbers reflect the downstream effects of rising rents and shrinking affordable inventory. When low-income households are unable to afford stable housing, they become more vulnerable to eviction, displacement, and homelessness.

Affordable Housing Preservation Critical as Units Face Expiration

Florida currently has 314,200 affordable rental units supported through state, federal, and local programs. However, more than 33,200 of these units could lose their affordability restrictions over the next decade if older contracts expire without renewal or new preservation funding.

The study emphasized that preserving existing affordable units is often faster and more cost-effective than building new ones, especially in markets where land costs, labor shortages, and rising insurance premiums make new development financially challenging. For property owners and investors, understanding the tax incentives and financing structures available for preservation projects is essential.

James Moore provides tax planning and consulting services to help real estate clients evaluate preservation opportunities, manage compliance requirements, and structure deals that support both financial returns and community impact.

What Florida’s Rental Trends Mean for Developers and Investors

The study’s findings point to several key takeaways for Florida’s real estate sector. Rapid in-migration continues to fuel demand for rentals, but new construction is not reaching the price points where the need is greatest. Smaller households and older residents are increasingly dependent on rentals, and cost burdens remain high even among full-time workers.

For developers and investors, these trends suggest a growing need for projects that target workforce housing and income-restricted units. However, the financial and regulatory challenges of delivering affordable housing remain significant. Access to financing, tax credits, and public-private partnerships will play a critical role in addressing the supply gap.

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