A growing number of Florida residents are turning to renting instead of homeownership, spurring a shortage of apartments. Data from the Florida Apartment Association indicates that the state would need to add more than 600,000 new apartments by 2030 to keep up with both the increase in population and demand.
“We have over 900 people moving here every single day, and if we don’t have housing for them, at some point, those individuals and their companies and their economic opportunity will go to another state,” says Amanda Gill, the association’s government affairs director.
The report estimates that builders would have to construct 47,814 new apartment homes annually to address the state’s needs over the next decade. However, Florida is projected to add only 33,688 apartments in 2019.
Gill also warns that a growing apartment shortage is driving up rental costs.
Meanwhile, developers statewide face higher material costs and regulatory fees. Gill estimates that about 32% of a developer’s construction costs come from a combination of federal, state and local regulations, such as fire codes and inspection requirements.
The Florida Apartment Association recommends that developers and government officials work together to reduce upfront construction costs and pass on savings to consumers.
Source: WUSF News (09/10/19) Brown, Delaney
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