Fla.'s Apartment Sector Boosted by Flood of Higher-Paying Jobs
Renters carry an average household annual income of $123,400, or 27% above the US mean of $97,400.
Growth in high-paying jobs is helping to drive apartment demand, and in some cases, higher rents, in Florida, according to a new report from Greg Willett at Institutional Property Advisors.
He reported that a “stunning” 58 percent of new jobs created in the state are in industries with high-income ceilings, such as professional and business services, finance, and information, which includes several technology sectors.
Today’s employment count of 9.66 million jobs in the state is up 1.82 million positions from the April 2020 low and is more than 500,000 jobs ahead of the early 2020 pre-pandemic peak. In the past, high-paying positions have traditionally accounted for only a quarter or so of the state’s jobs.
And with soaring home prices in the state, renters are encouraged to stay in the multifamily pool, IPA said, carrying an average household annual income of roughly $123,400, about 27 percent above the US mean of $97,400.
Florida is seeing some of the strongest apartment demand in the country – particularly for higher-quality multifamily assets, according to the report.
There are 1.25 million apartment renter households in Florida’s largest metros, up 7.7 percent from the early 2020 pre-pandemic total, with growth led by a 12.5 percent expansion in Jacksonville and a 10.3 percent increase in Orlando.
The number of renter households is also up over 6 percent in Tampa-St. Petersburg and in the Southeast Florida trio of Miami-Dade, Fort Lauderdale, and West Palm Beach, according to the report.
The U.S. overall pace is 5.4 percent.
While all the sizable apartment metros in Florida have experienced robust rent growth in recent years, North and Central Florida still hold a value perception when compared to the nation’s most expensive markets, IPA said.
Jacksonville’s average monthly rent of $1,510 per month in August was below the US mean of $1,824. Pricing in Tampa and Orlando — $1,854 and $1,802, respectively — matches the national average.
Rents in Southeast Florida are least affordable with the average monthly payment just over $2,400 in Fort Lauderdale and West Palm Beach, and nearly $2,600 in Miami.