TAMPA, Fla. (WFLA) — Florida cities are starting to fall in the rankings of most expensive places to rent in the United States, but Tampa is still in the top 20. With a one-bedroom rental cost average of $1,730, Tampa is tied with Nashville for No. 18.
St. Petersburg, while not in the top 20 cities with high rent costs, is ranked No. 27 according to a new rental study by Zumper, but Miami remains in the top five, ranked third. The Zumper study found cost changes were inconsistent across Florida, and other areas of the U.S.
While Tampa and St. Pete’s rent had risen, Tallahassee rental costs dropped 11 ranks, now costing renters a median of $920 per month compared to Tampa’s $1,730 or St. Petersburg’s $1,570.
However, the Zumper rent report for May said the rental market may be at an inflection point, or approaching a point where things may change direction.
“On the surface of Zumper’s May rental data, it looks like not much has changed. Our National Index has hit another all-time high, with the median one-bedroom rent at $1,414 and two beds at $1,758. The year-over-year numbers are staggering, with one beds up 12.8 percent and two beds up 13.9 percent,” Zumper reported. “Our month-over-month data for May shows the median one-bedroom rent rose by 0.3 percent relative to April, with two beds up 0.7 percent. Those numbers represent not only a cool down relative to recent months in percentage terms, but also in terms of raw dollar amounts.”
Zumper reported the market was starting to cool down, though based on 2021 trends, prices could “pop” like the year before, during this same period. “The trend line so far in 2022 does not suggest that’s about to happen, though we’ll find out in a month,” Zumper said.
As the housing market has seen “rapidly rising home prices” which contributed to rent cost increases, Zumper said a cooling market may help rent prices “chill” as well.
However, due to a difference in a wage ratio between home price and wages, and rent price and wages, Zumper said the affordability concern may not be the same for renters when it comes to causing a cooldown. “Rent still has room to grow,” Zumper said, before it hits an “affordability wall,” at least when taken nationally.