The state needs to add more than 600K new apartments by 2030 to keep up with the state’s growing population and demand for rentals, according to the Florida Apartment Association.
TAMPA, Fla. – A growing number of residents in Florida are turning to renting instead of homeownership, spurring a shortage of apartments. Data from the Florida Apartment Association indicates that the state would need to add more than 600,000 new apartments by 2030 to keep up with both the increase in population and demand.
The association’s government affairs director, Amanda Gill, says, “We have over 900 people moving here every single day, and if we don’t have housing for them, at some point, those individuals and their companies and their economic opportunity will go to another state.”
The report estimates that 47,814 new apartment homes would have to be built annually to address the state’s needs in the next decade. However, Florida is projected to add only 33,688 apartments in 2019. Gill also warns that the apartment shortage is driving up rent.
Meanwhile, developers statewide are facing higher material costs and regulatory fees. Gill estimates that about 32% of a developer’s construction costs come from a combination of federal, state, and local regulations such as fire codes and inspection requirements.
The Florida Apartment Association recommends that developers and government officials work together to reduce upfront construction costs and pass on savings to consumers.
Source: WUSF News (09/10/19) Brown, Delaney
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