Rising housing costs are driving up rental prices as well, according to recent data.
Rental prices grew around 7.8 percent last year for single-family homes, according to CoreLogic Inc.
This is an all-time high for rental price growth calculated by the company.
In December, rental prices rose 12 percent year over year, with Miami at a 35.7 percent increase.
The states with cities seeing the highest jumps in rent, in addition to Florida, include New York, New Jersey, and California.
The city with the biggest one-year gain was Austin, Texas, at 40 percent, according to real estate firm Redfin.
Experts say while rent is rising just about everywhere, the influencing factors differ by city.
For example, a lot of technology workers are moving to Austin, experts say, and in New York City, rent is simply bouncing back after falling during the pandemic.
Experts attribute the cause of rising rent to similar factors affecting home price gains: demand and lack of supply.
A Redfin survey also showed that while rent prices rose a normal 3 percent in 2020, they rose 14 percent last year.
Demand for rentals is growing as people are either priced out of the housing market, are unwilling to take on a mortgage, or just want a space of their own, experts say.
Some hope for interested renters comes from the number of investors who bought properties while rates hit record lows during the pandemic, experts say.
This will bring some supply to the market this year, although like the housing market, it may not be enough to meet such high demand.
The best course of action, experts say, is to seek out local advice from real estate agents and mortgage lenders.
These experts can explain the local market and availability based on what an individual or family can afford.
While some families need to rent because they can’t afford a down payment on a home, others may find that purchasing a home is more affordable if rent payments are skyrocketing in their town.
Some experts believe that while the hot housing market should begin to cool with rising rates, rental prices may not follow this pattern and instead will continue to rise.
Experts say a mortgage lender can help potential buyers determine how much they can afford — and provide all lending options — so buyers can make the best decision for their unique financial situation.
Lenders will take into account a borrower’s income, debt level, and how much of a down payment they can afford to determine individual rates and lending options.