Florida, once the highest-flying state in the U.S. for apartment rent increases, is now seeing rents fall in many cities while rents rise in the U.S. as a whole. A similar phenomenon is occurring in Austin, TX.

A new study by RealPage Analytics shows that in 3Q 2023 apartment rents fell by an average of 1% in Florida, while in the U.S. they rose 0.5%. The dip in Florida followed two years of rising rents spurred by population influx and a housing shortage, according to an earlier analysis by the company. "Now that new delivery volumes have increased, and the market has had time to settle, it's not surprising to see pricing in Florida come down once again," the analysis noted.

In some markets which formerly experienced nation-leading rent growth the third-quarter rent drop was even more significant. In Naples, rents fell 4.2%, in Cape Coral 3.8% and in Sarasota 3.6%. The only major Florida city to see rent growth was Tallahassee, where rents rose 0.6%.