Part 1: Why Housing Costs Keep Rising in Florida — and Why Supply is the Key
Florida’s housing crisis isn’t just about sky-high prices or families getting priced out of their hometowns. According to Florida State University’s Dr. Sam Staley, it’s about something far more fundamental: a system that simply won’t let the market work.
Staley, director of the DeVoe Moore Center and one of the state’s most respected voices on housing policy, says the real culprit behind Florida’s housing affordability woes isn’t demand — it’s supply. And what’s blocking that supply? Local governments, outdated zoning laws, and a political class that talks a good game about affordability but won’t approve the density or development needed to deliver it.
Ironically, Staley says it is leading bright red Florida down a path similar to ones in California, Massachusetts and other states plagued by costly regulation and an affordable housing crisis.
In this first installment of a multi-part Red Tape Florida Q&A, Staley breaks down why housing costs keep rising — and why, until cities, counties and the state get serious about reducing regulatory barriers, things aren’t likely to get better.
Skip Foster (RTF): Sam, let’s start with the question everyone is asking: Why is housing so expensive in Florida?
Sam Staley: I mean, we have a supply problem. It’s not demand-driven. It’s regulatory-driven, zoning-driven. It’s planning-driven. It’s process-driven. And we’re simply not building enough units to meet the demand. So, what happens is that the people that are in the housing have it. The people that don’t get left out. And the people that get left out are the ones at the bottom end of the market.
RTF: So it’s not so much that prices are being driven up artificially?
Staley: The price goes up because of the shortage of supply. The data is there. In fact, there are some economists that have gone through and have documented this pretty clearly. The cost of housing has increased significantly above inflation in urban markets that are growth-constrained. And it hasn’t in areas where housing markets are allowed to operate.
RTF: Are there unique elements to Florida’s housing landscape that make this worse?
Staley: Well, you know, the pandemic migration was massive. People fled high-tax, high-regulation states. They were looking for freedom. They were looking for lower costs of living, and they wanted the amenities. So people came down here. They bought. But now we’re dealing with the consequences of that, which is enormous demand.
RTF: And the problem is our systems can’t keep up?
Staley: Yeah. The permitting process takes too long. The zoning process is uncertain. Cities talk a lot about affordability and inclusive growth, but then they oppose projects or delay them for years. If you want affordable housing, you have to allow the supply to respond. You can’t be against growth and for affordability at the same time.
Coming next in Part 2: Those who delay housing projects are accessories in the affordable housing crisis.