If you are looking for a place to rent in South Florida, you may have noticed an increase in rental costs.
According to Zillow data, in August, the average rent in the Miami / Fort Lauderdale metro area increased 20% from the previous year.
“I’ve never seen a jump like this, not only since I was an adult and worked in real estate, but also looking at the data historically,” said Dr. Eli Beracha.
Beracha is the principal of the Hollo School of Real Estate at Florida International University. He says the surge in rent prices is linked to the surge in house prices, and that could be an indicator that higher prices are here to stay.
“They take whatever the market gives them, so as long as the consumer is able to pay more, they will charge more,” Beracha said.
Higher housing costs equate to less money tenants have to pay other bills.
“Rising rent prices take a big chunk of people’s paychecks,” said Jeff Tucker, Zillow’s senior economist. “A common metric is about 30% or a third of your income, but we’re seeing a lot of tenants exceed that benchmark. “
Zillow analysis found that Latino households have 41% of their income to rent. Black households spent about 40% of their income on renting. This is compared to 35% for white households.
“All of this leads to a much tighter budget and a much more difficult time to manage with rent increases for tenants of color,” Tucker said.
Finding accommodation to rent can be even more difficult if you use good accommodation.
“I found a place to live, the landlord was ready to rent me out, he wanted $ 1,900. The Section 8 voucher told him they would only pay $ 1,852, ”Keisha Guyton said.
Keisha Guyton has been looking for accommodation to rent since May. She says she was left out by owners who were looking to make more money than her voucher would pay.
“Forty-eight dollars less and he was like, ‘Hey, I can get somebody to pay that and more,'” Guyton said, one owner told him.
There are local ordinances to prevent landlords from turning down tenants based on their source of income.
“Proving that an owner has systematically discriminated against people is a very long process,” said lawyer Denise Ghartey.
Ghartey works with the Community Justice Project and says the source of income discrimination is just another potential hurdle tenants need to overcome.
And if the rental market doesn’t cool down, it could evict longtime residents.
“It will force people like me who were born and raised in Miami to not be able to live here,” Guyton said.