Wednesday, October 21, 2015
Cape-Fort Myers has fastest rent spike in America
The average rent for a single-family home in the
Cape Coral-Fort Myers area spiked 23.6 percent in the past year, according to data released by RentRange, making it No. 1 in the country.
In a separate report, ALN Apartment News released statistics recently showing that for apartment complexes with 100 units or more, the median rent in this area increased 14.6 percent to $1,099 while occupancy increased 0.6 percent to 96.6 percent.
Ranked third on the RentRange list for single-family homes was Sarasota, up 17.6 percent.
California and Florida dominated the list, with seven of the top 10.
In Cape Coral-Fort Myers, the average single-family rent for the third quarter of 201 was $1,540.27, up from $1,246.50 a year earlier.
Randy Thibaut, owner of Fort Myers-based Land Solutions real estate brokerage, said that “You’re seeing this happening because there was a lot of inventory of homes bought by investors who bought to rehab and later sell. It was further compounded by REIT’s that bought portfolio of homes.”
As a result, he said, “The price of a new home has gone up 30 to 50 percent in the last 24 months and priced a lot of people outside the market. I don’t know when it’s going to stop.”
The RentRange data shows that cities in the South and West generally had the greatest increases in home rental rates, while cities in the Midwest and Northeast experienced smaller increases.
But that doesn’t mean
Southwest Florida is a landlord’s paradise - markets in the Midwest and the central U.S. often generated higher yields than many markets in California and Florida.
"While, not surprisingly, California and Florida are experiencing the largest rental rate increases, further analysis reveals that markets in Alabama, Texas, Kansas and Ohio actually produce a much higher average yield," RentRange CEO Walter Charnoff said in a written release Monday.
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