Tampa Bay rents and mortgages are rising faster than incomes, and this problem is expected to put residents that are already “housing burdened” in an even tougher spot later this year, according to real estate website Zillow’s analysis.
The cost of rental housing is expected to become more of a burden for the typical Tampa Bay renter by December of this year, surpassing a threshold of 34% of people’s income spent on rent each month. Spending 30% of income on rent is considered, “housing burdened.” This increase in rental costs will put renters at risk of not having enough money left over for groceries, bills and other expenses.
According to Zillow, money for rent represented 32.8% of Tampa Bay renters’ income in June 2021. That figure is forecast to rise to 34.3% by December.
If this occurs, Tampa Bay renters will be spending more of their income on rent than their counterparts in Los Angeles, Anaheim and Long Beach. Miami-Dade’s lack of affordability comes in at the highest in the country, with a current rate of 39.4% and an expected 40.3% of a resident’s income going to rent predicted by December.
Nationally, rent paid as a share of income is forecast to rise beyond 30% by December.
The pandemic’s impact was felt more intensely by renters, who were more likely to report a loss of income and or job loss than homeowners, according to another Zillow survey, and homeowners typically earn more than renters do.
Historically low mortgage rates have kept monthly mortgage payments reasonable for home buyers in the face of rising home prices, if they can come up with a down payment. But even if mortgage rates stay at current low levels, continued demand for homes will soon outweigh this advantage, pushing mortgage payments as a share of income to the highest rate seen since at least 2014, when Zillow’s data collection began. The more mortgage rates rise, the less affordable home loans will become in the coming months, Zillow says.
“Increasing the available supply of homes -- especially more dense, affordable housing types like townhomes and condos -- will help balance the market and give renters and prospective home buyers opportunities to seek relief from being burdened by housing costs,” said Nicole Bachaud, Zillow economic data analyst.
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