Rent prices have been soaring in Florida’s Panhandle. From Pensacola to Tallahassee, rents have increased by 28.6% over the past three years. The average price of an apartment has risen from $1,355 in 2020 to $1,743 in 2023, with annual increases at 9.53%. This trend shows that despite challenges like the pandemic and hurricane risks, renters are still drawn to the Gulf Coast’s beautiful beaches and turquoise waters.
According to Dr. Shelton Weeks, a real estate professor at Florida Gulf Coast University, renters in hurricane-prone areas weigh the risks against the benefits of living on the Gulf Coast. Factors like the high quality of life, year-round temperate climate, and lack of direct storm-related costs for renters make the area attractive despite the dangers.
Government Support and Rising Prices
The infusion of government capital into disaster relief and reconstruction efforts acts as a safety net for renters and homeowners in the aftermath of extreme weather events. Federal subsidies help stimulate economic growth and provide assistance to those affected by disasters like Hurricane Idalia.
FEMA offers federal disaster relief to renters in hard-hit areas, providing temporary housing and financial aid for property losses and expenses. However, the increasing frequency and severity of natural disasters pose challenges to rental housing stock nationwide.
As older housing stock is replaced with newer, more resilient buildings at higher construction costs, rent prices will continue to rise. Additionally, tenants in hurricane-prone areas may face higher insurance premiums, property upgrade requirements, and construction costs passed on to them by landlords.
Experts like Dr. Weeks highlight the challenges faced by tenants in these areas and emphasize the impact of post-disaster costs on rent prices.
