Buying VS Renting. Which is Better?
As a result of the COVID Pandemic, rental prices have increased dramatically in the state of Florida. To make matters worse, the paid wages of working Floridians is not enough to sustain a home, food, and healthcare. Many policies were implemented during COVID to alleviate some of the burdens, however most of those policies have ended. The CDC’s eviction moratorium has expired and will not be extended. Although Florida is among one of the higher paying minimum wage states at $8.65, a person would have to work 93 hours a week or 2.3 full-time jobs in order to afford a one-bedroom home at Fair Market Value (according to National Low Income Housing Coalition).
Those who want to qualify for the Emergency Rental Assistance Program, must have many requirements, one of which being income level as a factor. The other factors include whether the applicant was unemployed because of COVID, experienced reduced income, or had other financial hardships because of the pandemic. An additional factor is that applicants must show they would likely risk being homeless if they were to continue on without any kind of financial assistance. The total amount of money from the Emergency Rental Assistance Program to the state of Florida is around $870 million. Many counties implemented their own assistance programs such as Citrus, Hernando, Hardee, and Highlands. The rising rental prices along with both decreased wages and housing inventory makes the cost of living difficult after the pandemic.
Of the money given to Florida, the funds have only served 100,000 with local governments obtain separate federal money. Even with all of the assistance of funds, Floridians need more assistance programs geared specifically towards housing and potential eviction concerns.
As the federal moratorium has expired, around 144,000 Floridians could be at risk for eviction. Zillow estimates that over 450,000 eviction filings will proceed and over 1440,000 rental are also at risk. This has thousands of Floridians concerned, especially given all of the other pressing economic issues stemming from the pandemic, and residents seems to be having a hard time obtaining funds. Many Floridians are concerned as to the number of potential evictions that will be filed. Floridians should seek out available assistance programs online at the Department of Treasury.
Although unemployment due to COVID is a concern, so is the concern that even those who are working cannot afford what is considered fair market value rent on rental homes. Even if assistance programs became available, Floridians must still meet the difficult threshold requirements in order to benefit from them which makes obtaining funds for many residents extremely difficult.
Many Floridians are vaccinated, however case numbers continue to rise due to the spread of the delta variant. This poses more concern for Florida residents needing more financial assistance or at risk of being evicted and ultimately homeless. Our primary focus as residents should be on securing rentals and homes for families that are in need of them. Contact your local realtor for any and all of your real estate needs.
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