The state’s rocky housing market is mostly to blame.
That high inflation stems from the significant population growth in the state over the last two years, which has driven up demand for goods.
“Any time you have a population that is growing that is going to push up demand for everything whether its goods, services, food, clothing, vacations, housing, etc.,” said Amanda Phalin, an instructional associate professor at the University of Florida’s Warrington College of Business Management Department.
The influx of newcomers is clashing with a limited housing market that can’t meet the increased demand, driving up prices for both renters and buyers.
The rising rates of homeowners’ insurance premiums — which are included in mortgage payments — in the state, due in part to the risk of rebuilding homes impacted by hurricanes, is also contributing to the increase in housing costs.