ORLANDO, Fla. - The Orlando real estate market is seeing the highest rent hikes in history. Experts say the surge is unprecedented and can be blamed on the housing market.
Rent in the City Beautiful isn't looking so pretty. In the last year, rent in the Orlando market has increased nearly 14%, according to CoStar Group which is a company that analyses the housing and commercial real estate industry.
"We’ve never seen demand like this in Orlando," said the Director of Market Analytics in Florida for CoStar Group Brian Alford. "If you look at the market, all of Orlando is seeing record levels of rent growth."
The average cost for rent in the Orlando market is about $1,500. Alford says it's getting tough for people to afford and says the spike doesn't seem to be caused by lingering pandemic effects.
"That is comparing it to the worst of the pandemic when rent fell in the first two months, but they were only down 2%, so even if you adjust for that, we’re still seeing unprecedented levels of rent growth over the past year."
Alford blames the drastic upward trend on the housing market, which is something local real estate agents are seeing first-hand.
"They’re forced to keep renting and it’s kind of sad," said Milton James a Real Estate Sales Associate with RE/MAX Prime Properties.
James says because the housing market is so hot, homes are selling fast and the inventory is low it's forcing renters to be locked in place.
"We’re seeing multiple offers at every price point," said James. "A first-time home buyer, they’re getting beat out. So because they keep getting beat out they have to continue renting. So the demand is up and if the demand is up prices go up."
People are not only stuck renting, but many are struggling to pay it. Alford predicts this upward trend will stop, but not before more people sign into another lease.
"The rent growth will not stay this high. It really can’t keep growing at this rate. It’s already pushing the limits of what people can afford," said Alford.