Is The Cost Of Rent In Boca Raton Increasing Faster Than Elsewhere?
The rising cost of rent has been a topic of national concern for years. Even before the pandemic, rent was increasing at a rate that significantly outpaced inflation. Since the start of the pandemic, it has shot up throughout the country.
If you have been renting the same place over the past few years, you may not realize just how much rent has risen. You will have had regular increases, but the cost of renting a new place is much higher.
The numbers show the true scale of this. Over the past five years, rent has increased between 25% and 50% in the US. These figures are staggering, even when put in context of the high inflation recently.
For Boca Raton residents, the question is whether we are facing the same sort of crisis. Is the cost of rent here rising as fast as elsewhere? Or is it even worse?
Why is rent increasing at such a fast rate?
To get a clear idea of what is happening in Boca Raton, it is important to understand why rent is increasing in the US. The simplest explanation is one of supply and demand. Put in basic terms, there are few rentals available and a lot of people looking to rent.
This was the case before the pandemic with house prices rising and more people turning to rentals. However, the pandemic made matters far worse. Severe construction delays led to huge deficiencies in supplies. Among other factors, this caused housing prices to skyrocket, making it even more difficult to buy a home.
More people who would have previously bought a home chose to rent instead. At the same time, the supply crisis applied to the rental market as well. Landlords were able to increase rent significantly, with renters having no choice but to pay up. This was not simply down to landlord greed – they needed to cover increasing costs too.
So, how does Boca Raton match up?
Boca Raton’s rental crisis
When comparing the cost of rent in Boca Raton today to five years ago, you will see that rates have gone up at least as much as they have throughout the country. While the cost of rent for a one-bedroom has gone up about 18%, the cost of rent for a four-bedroom has risen a full 75%! A studio apartment has risen 23%.
However, these figures leave out important context. That context is the difference between the past year and the four years that came before that. The year-on-year change for a one-bedroom apartment is a decrease of 12.7%. For a four-bedroom, the year-on-year change is an increase of just 6%.
In other words, the price of rent is no longer skyrocketing. In some cases, it is actually going down.
How does Boca Raton compare?
When looking at year-on-year change, Boca Raton actually compares favorably to many other parts of the United States. NYC has seen a 24.5% increase in rent over the past year for a one-bedroom. If we look a bit closer to home, Miami has increased by 21% year-on-year, while Tampa has seen a 14.2% increase. Even Jacksonville has increased 7.3%.
So, in context of the past year, Boca Raton’s rental market has experienced a more significant correction than other parts of the US and Florida itself. That being said, prices are correcting throughout the US as we approach the end of 2022. Other parts of the country may soon see as significant decreases in the cost of rent as one-bedroom apartments in Boca Raton.
A return to something resembling normalcy is most likely a good thing. However, it is impossible to say exactly how much of a correction will happen. As things stand, Boca Raton is in a relatively good position.
