Florida’s Panhandle has seen a similar trend. From Pensacola to Tallahassee, rents have increased by 28.6% on average over the past three years. The average rent for an apartment has risen from $1,355 in 2020 to $1,743 in 2023, with annual increases at 9.53% — indicating a strong attraction to the Gulf Coast’s turquoise waters and white sand beaches, despite the challenges of the pandemic and hurricane threats.
“[T]here’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 in hurricane zones weigh the risks against the Gulf Coast’s high quality of life, year-round mild climate, outdoor activities, and the advantage of not having to bear direct storm-related costs to damaged properties.
Institutional safety nets and higher prices
Government funding, including economic aid for clean-up and reconstruction, along with federal subsidies, provides a safety net that boosts economic growth and mitigates the impact of extreme weather events on homeowners and renters.
In federally declared disaster areas like Florida’s Big Bend region, renters hit by hurricanes like Idalia qualify for federal relief, such as temporary housing and financial aid for property loss, as reported by FEMA.
The increased frequency and intensity of natural disasters pose challenges to rental housing across the nation, from hurricanes and floods to tornadoes and wildfires.
About 40% of occupied rental properties in the U.S. — approximately 17.6 million units — are located in regions with expected annual losses from severe weather events. Around 6 million of these units are in areas with “relatively” or “very high” expected losses.
As older, vulnerable housing is replaced with newer, more costly construction, rent prices continue to rise.
Experts like Dr. Weeks highlight challenges for tenants in hurricane-prone areas. After destructive storms, soaring insurance premiums, costly property upgrades to meet building codes, and increased construction and labor expenses are often passed on to renters.
“[T]he folks that are running apartment complexes… have no choice but to pass those costs along to tenants, their customers,” said Weeks.
