A recent University of Florida survey finds that the real estate rental market all across Florida is feeling the effects of the economic downturn, especially in the apartment sector as renters begin doubling up to save money, which in turn is causing the occupancy rate to decline.
The results from the most recent quarterly survey of Florida real estate trends shows fewer takers for all kinds of properties for lease particularly apartments, as the rental market is pulled down by the foreclosure crisis and a slumping economy.
The decline may be caused by the following factors:
·         Either people are becoming increasingly cautious or they have already been impacted by declining real estate sales or the state budget cuts.
·         People are trying to save money by doubling up and sharing accommodations with roommates, reducing the demand for apartments.
·         There also has been a softening of the retail market, with fewer firms going into business, a larger number consolidating operations with other companies and some closing up shop altogether.
The worst outlook continues to be for single-family housing sales, with record numbers of foreclosures stemming from the subprime mortgage crisis, particularly in places such as Lee and Osceola counties as well as along the Gold Coast north of West Palm Beach. Meanwhile commercial rental markets will suffer in varying degrees but it will pass and recover.
Although the outlook for apartment occupancy declined for the first time in the two-year history of the UF survey, expectations for apartment investment remained steady and even improved noticeably for investing in apartments for the purpose of converting them into condos
The UF study has been more positive about the real estate outlook than media reports because it asks respondents for their perceptions on long-term investment in addition to short-term markets.  It also includes questions about rental property as well as the more commonly addressed ones relating to ownership properties, such as single-family residential housing and condominiums, where the problems in the real estate industry began and continue to bring the news of doom and gloom.
On a positive note, the survey revealed that respondents expect no further declines in the price of single-family homes. They predict that condominium prices will likely continue to drop because that market is overbuilt and tends to attract naïve speculators.
Perhaps the best news is that capitalization rates, the measure of how fast an investment pays off in net cash, have remained steady for all types of property except apartments since 2006, a sign that Florida continues to be regarded as a positive real estate investment .
University of Florida Survey Finds Florida Rental Market Impacted by Economic Downturn
 

A recent University of Florida survey finds that the real estate rental market all across Florida is feeling the effects of the economic downturn, especially in the apartment sector as renters begin doubling up to save money, which in turn is causing the occupancy rate to decline.
The results from the most recent quarterly survey of Florida real estate trends shows fewer takers for all kinds of properties for lease particularly apartments, as the rental market is pulled down by the foreclosure crisis and a slumping economy.
The decline may be caused by the following factors:
·         Either people are becoming increasingly cautious or they have already been impacted by declining real estate sales or the state budget cuts.
·         People are trying to save money by doubling up and sharing accommodations with roommates, reducing the demand for apartments.
·         There also has been a softening of the retail market, with fewer firms going into business, a larger number consolidating operations with other companies and some closing up shop altogether.
The worst outlook continues to be for single-family housing sales, with record numbers of foreclosures stemming from the subprime mortgage crisis, particularly in places such as Lee and Osceola counties as well as along the Gold Coast north of West Palm Beach. Meanwhile commercial rental markets will suffer in varying degrees but it will pass and recover.
Although the outlook for apartment occupancy declined for the first time in the two-year history of the UF survey, expectations for apartment investment remained steady and even improved noticeably for investing in apartments for the purpose of converting them into condos
The UF study has been more positive about the real estate outlook than media reports because it asks respondents for their perceptions on long-term investment in addition to short-term markets.  It also includes questions about rental property as well as the more commonly addressed ones relating to ownership properties, such as single-family residential housing and condominiums, where the problems in the real estate industry began and continue to bring the news of doom and gloom.
On a positive note, the survey revealed that respondents expect no further declines in the price of single-family homes. They predict that condominium prices will likely continue to drop because that market is overbuilt and tends to attract naïve speculators.
Perhaps the best news is that capitalization rates, the measure of how fast an investment pays off in net cash, have remained steady for all types of property except apartments since 2006, a sign that Florida continues to be regarded as a positive real estate investment .