Despite Continuous Florida Construction, Renters on a Budget Have Few Options

Miami, FLPhoto byMatin KeivanlooonUnsplash

The Hamilton Apartments in Miami keep adding new towers. The second and third towers for the resort were approved in 2022, and the complex offers a close location to many of Miami's corporate offices, restaurants, and other amenities. The apartments are smoke-free and offer on-site fitness centers, lounges, and a putting green. It'll just cost you $4,000 a month to live there.

Such is the case throughout much of the state of Florida, which has seen tremendous population growth in recent years before ultimately becoming the nation's fastest-growing state in 2022. The demand for housing statewide led to price surges for homes and apartments alike throughout 2021 and much of 2022, before finally retreating slightly at the end of the year according to real estate data aggregator Redfin.

As is often the case in a supply shortage, townships and developers responded by building new apartments, condos, and developments. Unfortunately for those on a budget or even those in the middle range of the market, most of that new construction was decidedly expensive. While only a small percentage of new housing generally falls into the "affordable" category, even moderately priced units are now hard to come by.

Even traditionally cheaper markets such as Orlando are seeing the boon in high-end luxury community development. New projects in that area include $250 million projects to bring office space and residential units all in one development, but at a cost higher than many could afford. That Florida County - Orange County - decided to step in and attempt to set price or rent controls, but the measures resulted in almost immediate legal action, the outcome of which is still pending.

Down in the southwestern corner of the state, where several counties lost even more housing amid the damage from Hurricane Ian, a similar situation awaits the areas' workers. Naples has long had more luxury apartment construction planned, and the aftermath of the hurricane hasn't appeared to deter that growth. While some measures have been planned to bring affordable housing to the area, most have not yet come to fruition due to permitting or construction delays. Housing affordability studies conducted in that area have put the shortfall at more than 10,000 units.

Miami, FLPhoto byTomas LundahlonUnsplash

With any growth, states, and counties can expect to see some pressure as the existing housing supply dwindles or infrastructure struggles to keep up with a growing population. Outside influences, such as low interest rates spurring demand for housing at the onset of the COVID-19 pandemic also play a role, and the pricing surge in housing costs is not a uniquely Floridian problem.

Florida is not alone in struggling over how best to address the supply shortages, either. Arizona recently passed legislation attempting to pass landlord tax savings to renters, only for Governor Hobbs of that state to veto the bill claiming it didn't ensure renters would see gains. Florida, on the other hand, has recently seen legislation proposed to outlaw rent and price controls in the state, leaving the price and supply problems to the market to resolve.

For now, though, there doesn't appear to be a solution on the table for Florida residents who are struggling with their housing costs. And that number is growing - Florida has the highest percentage of residents struggling to make the rent of any state in the nation. The new apartment complexes being proposed don't appear to be addressing those issues, at least for the time being.

Future plans may bring new multi-unit buildings to some communities, but at present, renters shouldn't expect dramatic changes any time soon.