The nation’s homeownership rate is the lowest it’s been in 48 years, and consequently competition for rental units is more prevalent than ever before. While New York and California are notorious for unaffordable rentals, Florida renters spend a larger percentage of their earnings on rent.
According to Enterprise Community Partners, a nonprofit real estate investment company based in Maryland, Florida leads the nation in percentage of tenants who spend greater than 50 percent of their income on rental housing. Coming in at just over 30 percent, Florida beat out both California and New York, which came in at exactly 30. South Florida ranked first when the study was narrowed down to Florida’s Palm Beach, Broward, and Miami-Dade counties, which exhibited a 35.7 percent score in the same study.
Wages fall while rental prices rise
One reason for the lack of affordable units stems from developers focusing their attention on high-priced luxury complexes, rather than affordable places for the middle-class. This, in combination with low-wage job opportunities, has created a scarcity of financially feasible rentals.
In Palm Beach county, for instance, the average wage fell two percent in a 12 month period ending with the first quarter of 2015. Over this same time, the average rent in the county rose by 8.5 percent, based on a study completed by brokerage firm Marcus & Millichap.
Furthermore, a person spending the majority of his income on rent will have difficulty saving up for a down payment on a home. Though the rental outlook seems bleak in the Sunshine State, homes are much more affordable when compared to other high-priced rental areas of the country. For example, 61.7 percent of homes in Palm Beach County are affordable to a medium-income family, while the same holds true for a mere 11 percent of San Francisco homes.
If you have questions about foreclosure or are residing in a rental in jeopardy of foreclosure, Graham Legal can certainly help. We invite you to schedule an initial consultation with our group of attorneys and learn more about the cost of foreclosure defense today.