State revenue, surplus flush – housing costs high
The view of the ocean from Lauderdale-by-the-Sea, FL
Florida continues to outdo itself, with revenue collections beating projections, a record state budget surplus, and unemployment returning to low pre-pandemic levels. It’s no wonder that the Sunshine State was the top place searched by out-of-staters looking to move, but it’s also contributing to exploding housing costs, with a new report showing median rent has hit a record high. It’s all in this week’s look at Florida economic news.
Wanna-Be Floridians: Coldwell Banker has a “Move Meter,” an online tool showing where Americans would like to move next. Florida is not only the top destination right now, but few Floridians are looking to move outside our borders. The report shows residents of New Jersey, California, New York, Illinois, Ohio, and Massachusetts have the most interest in Florida. The cities they searched the most were Sarasota, Miami, Naples, and Tampa.
High Rents: All that interest and the subsequent population growth is part of the reason cited for the big increase in rent. Florida’s median rent hit an all-time high of $1,726 a month in June compared to $1,408 a year earlier, according to the Apartment List National Rent Report. Other factors are low inventory and competition with home sales. The Waller, Weeks and Johnson Rental Index shows Florida has 10 of the 14 most-overvalued rental markets in the country – all by more than 13%, with the Miami market overvalued by 22%. Home prices are hitting record highs, too. Single-family median prices rose 21.8% year-to-year in May to $420,000, with Miami-Dade County hitting a record high median price of $575,000, as we reported in our last newsletter.
Revenue Up/Unemployment Down: All those new residents (and ever-increasing visitors) are contributing to ever-growing tax collections, whether it be property, documentary stamp, or sales taxes. General-revenue collections continue to beat expectations, with May revenues topping projections by 21% or $741.8 million, according to the most recent report. Preliminary June collections exceed estimates by $950 million. Meanwhile, the number of unemployment claims is back to pre-pandemic levels, reflecting the national trend. Florida’s unemployment rate was 3% in May, compared to 3.6% nationally.
Florida’s Record Surplus: Not coincidentally, the official state surplus for the 2021-2022 fiscal year that just ended June 30 is $21.8 billion. That’s the highest budget surplus in state history and 21% above the state budget for the year. Fiscal stimulus monies contributed as well. The budget surplus has proven especially handy in the past to help pay for needed recovery from devastating hurricanes and may be needed this year should we realize the forecasted above-average hurricane season.
LMA Newsletter of 7-11-22
