Increasing Housing Demand
By the end of the decade, Florida may need over half a million additional homes to accommodate the state’s rapid population growth. The Florida Apartment Association estimates a requirement of more than 570,000 housing units by 2030 to meet this demand.
Rising Rent and Home Prices
Affording a place to live has become a significant challenge. Reverend Courtney Jones from St. Pete highlights that some residents, like a member of her congregation, are forced to work well into their seventies to afford a one-bedroom efficiency apartment, which costs $1,450 monthly. Homeowners also face challenges, with some families unable to live independently due to high costs.
Wealth Gap in Home Ownership
According to Redfin, rising home prices and interest rates have widened the real estate wealth gap. Last year, only 6% of new mortgages went to very low-income Americans, whose median household income was $41,000. In contrast, 45% of new mortgages went to high-income buyers, with a median income of $172,000. In Tampa, the disparity is even more pronounced, with just 2% of new mortgages going to very low-income earners, while 52% went to high-income buyers.
Future Affordability Concerns
A Smart Survey analyzed Zillow house price data and federal income data, ranking Florida among the top 10 states where houses will be the least affordable by 2030. The average house price is projected to reach $712,439, while the average income is estimated to be $51,377.
Impact of Climate Change
Climate change adds another layer of complexity to Florida’s housing market. Coastal and low-lying areas are particularly vulnerable to sea level rise, increasing temperatures, and heavier rainfall. The Tampa Bay Regional Planning Council’s 2022 report suggests directing new affordable housing construction to higher elevations and more inland areas.
Risk of Gentrification
Research from Florida State University indicates that sea level rise could lead to gentrification in inland communities as coastal residents seek higher ground. This shift may increase property values and rents, making these areas less affordable. Four neighborhoods in Pinellas County are identified as high risk for displacement: two near the coast in Clearwater and Largo, and two inland areas with predominantly Black populations in Lealman and South St. Pete.
Efforts to Address the Crisis
Reverend Jones, through the organization FAST (Faith and Action for Strength Together), is advocating for local governments to create more affordable housing in Pinellas County. The group of faith leaders calls for accountability and action, emphasizing that while change may not happen overnight, persistent efforts will lead to progress.
Legislative Response
Florida has allocated $711 million to tackle the affordable housing crisis. Further analysis is expected to determine the effectiveness of this new legislation in addressing the state’s housing challenges.
