Check Out Our Market Updates

3 Real Estate Markets Expected to Experience Exponential Rent Growth in 2022

Exponential Rent Growth in 2022

If you are looking for smoking hot properties for a great investment opportunity and want to learn about real estate markets expected to experience exponential rent growth in 2022, these three rental markets are where you should be looking!

It’s because rental rates have increased as quickly as home prices in some places across the country over the past two years. And it’s all thanks to the vital combination of low supply and high demand.

While rental growth is slowing across the board, some markets are experiencing double-digit year-over-year rental growth. Here’s a close look at these markets exploding and experiencing incredible growth despite the changing real estate market.

1. Orlando, Florida

Orlando, Florida - Exponential Rent Growth in 2022

The beautiful city of Orlando, Florida, is one of these markets experiencing massive growth in rental rates. This is especially surprising because it’s known that it’s more affordable to buy than rent here.

While estimates may vary, as of June 2022, records show that the city has experienced between 18-20% year-over-year rental growth. Because the city has only 1.43 months of inventory till June, many still prefer renting here.

The city now offering many high-quality job opportunities has played an essential role in the city’s rental growth. It’s all thanks to the city’s diverse industries like tourism, biotech, simulation, defense, manufacturing, and aerospace.

In fact, Orlando has been declared the second-fastest growing US city in 2021.

However, potential Orlando real estate investors should be aware of the commissioner’s rent control discussion. If it’s passed, it goes to the ballot in November, and the decision made can potentially impact the area’s future rental growth.

2. Tampa, Florida

Tampa, Florida - Exponential Rent Growth in 2022

According to the U.S. multifamily matrix measured by Yardi Matrix, Tampa has experienced over a 40% increase in rents over the past two years. And May 2022 has especially experienced more than 20% year-over-year rental growth.

So it’s not surprising to learn that Tampa has been the country’s fastest-growing rental market over the past two years. There are various reasons for this massive demand and growth for rental housing in the city.

Most important is its diverse economy revolving around technology, healthcare, and construction.

Secondly, Tampa is Florida’s second-largest port and thus a budding tourist destination.

And last but not least, there is an increasing number of professionals shifting from Northeast and South Florida to Tampa. Their rush to taste Gulf Coast living has led to the increased demand for rental housing here.

However, like Orlando, it is more affordable to buy than rent in Tampa. So it’s predicted that the rental growth may slowly return to normal once the housing supply catches up with demand.

3. Miami, Florida

Miami, Florida - Exponential Rent Growth in 2022

This beautiful beachside South Florida city hovers over the 40% mark in rental growth. And based on estimated sources, June 2022 has increased year-over-year growth of 16-24%.

With this growth, Miami has been second to Tampa when it comes to the fastest-growing rental markets in the country for the past few years. And this is because the city successfully attracts visitors from across the globe for various reasons.

People tend to flock to the city not only to visit but also to work, play, and live here. It’s all because of the city’s strong financial industry and diverse hospitality, tourism, cruise lines, and manufacturing job opportunities.

Looking at these statistics, if you are looking for red-hot, smoking US rental properties that show no signs of dropping soon, you have to stick to the South.

It’s no mistake that The Sun Belt experiences maximum nationwide rent growth, with Florida and Texas forefront in the rent growth race.

The other markets like Arizona, Charlotte, Rochester, New York City, North Carolina, Tucson, San Diego, Seattle, and many more may have also experienced at least 20% year-over-year rent growth.

However, according to Yardi Matrix for national rent growth, the Sun Belt cities house 23 of the 30 top markets displaying positive rent growth. A recent CoStar Group report indicating that 16 of the top 20 markets for year-over-year rent growth are Sun Belt cities further strengthens these statistics.

Contact Ed today for all your real estate needs in South Florida

Leave a Reply

Your email address will not be published.