Rent prices in Florida’s Panhandle have increased significantly. From Pensacola to Tallahassee, rents on average rose by 28.6% in the last three years. The average cost of an apartment went up from $1,355 in 2020 to $1,743 in 2023, with yearly increases at 9.53%. Despite challenges like the pandemic and hurricanes, renters are drawn to the beautiful beaches and turquoise waters along Florida’s Gulf Coast.
“There’s a lot of opportunity here. The economy is growing, and as a result, folks weigh that trade-off. Hurricanes are a serious risk, but we have perils associated with severe weather all over the country,” said Dr. Shelton Weeks, Lucas professor of real estate at Florida Gulf Coast University.
Renters understand the risks of living in hurricane-prone areas, but they often consider the Gulf Coast’s high quality of life, pleasant climate, and the fact that they don’t have to bear direct costs for storm-related property damage.
Institutional safety nets and higher prices
Government funding, including economic aid for recovery and reconstruction after disasters, provides support for economic growth and helps alleviate the immediate impact of extreme weather events on homeowners and renters.
Federal assistance like temporary housing and financial aid for property loss is available for some renters in hard-hit areas like Florida’s Big Bend region, which was affected by Hurricane Idalia.
The increasing frequency and severity of natural disasters present challenges for rental housing across the country, from hurricanes and floods to tornadoes and wildfires.
With older housing being replaced by newer, more expensive construction, rent prices continue to rise due to higher costs of building and maintenance.
In Gulf Coast rental markets, tenants face additional challenges post-disaster, such as higher insurance premiums, property upgrades to meet building codes, and increased construction costs passed on to renters.
