Home / Daily Dose / 5 Reasons for Housing Concerns in Florida
Print This Post Print This Post

5 Reasons for Housing Concerns in Florida

FloridaFloridians are spending more than the recommended 30 percent of their income on housing. In South Florida and Orlando, housing affordability for low- and moderate-income workers is a bigger issue than ever, writes Amy Martinez, Associate Editor at Florida Trend. According to the report, the top reasons for the shortage of workforce housing, an issue faced by several communities in Florida, are as follows:

Increasing Population

With the state adding about 335,000 people every year, the rate at which the population of Florida has grown resulted in a higher demand for housing of all types. The population is expected to grow further at 6.5 percent to 21.5 million in 2020.

Rising Interest Rates

Rising interest rates have further increased the monthly costs of purchasing a home. Low- and moderate-income workers are especially affected by the rise in interests and remain cost-burdened. According to the Florida Policy Institute, 36 percent of Florida households are paying more than 30 percent of their incomes for housing, including mortgage or rent, utilities, taxes, insurance, and neighborhood or condo association fees. Nearly 20 percent of Floridians are spending more than half of their incomes on housing.

Surging Median Home Values

Median home values are far outpacing the rent rates due to the increased demand from new residents. This upward trend has a far-reaching impact on affordability for low-wage workers, making it difficult for them to own a home and driving demand for affordable rental housing.

Only 31 affordable rental units are available for every 100 renters who make less than 30% of the median income in their area, the report indicated.

Declining lower-cost housing Units

Restrictions on local land-use and impact fees have led to an increase in construction costs,  preventing the development of smaller, lower-cost housing units, such as apartments, mobile homes, and mother-in-law suites.

The sample Fair Market Rent for a modest two-bedroom apartment is $1,351 in Miami, $1,387 in  Fort Lauderdale and $1,422 in West Palm Beach, the report stated.

Top Five Most-Expensive Areas in Florida Based on Hourly Wage (needed to afford an average two-bedroom apartment)

Monroe County - $29.12
West Palm Beach -$27.35
Fort Lauderdale p-$26.67
Miami - $25.98
Naples -$23.46

Read the full report here.

About Author: Donna Joseph

Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at staffwriter@thefivestar.com.
x

Check Also

Discussing the Future of Housing

United States Secretary of Housing and Urban Development, Dr. Benjamin Carson, will share his vision for the agency he heads at the 2019 Five Star Government Forum.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.