The Local Picture in Flagler County

A new 2025 Rental Market Study from the University of Florida’s Shimberg Center highlights a stark reality for Flagler County. Nearly 37% of renters—about 4,478 households out of 12,000—are considered cost-burdened, meaning they spend more than 40% of their income on housing. In Palm Coast, the imbalance is even more severe. Renters earning 30% or less of the area median income (AMI) have access to only 553 affordable units, while more than 1,600 households fall into this category, leaving over a thousand families without affordable options. Even when the threshold expands to include households earning up to 40% AMI, the deficit grows larger, underscoring how difficult it is for low-income families to keep a roof over their heads.

Subsidized units exist, but supply is far too limited. Flagler County has only 889 subsidized rentals available to its residents, which leaves a large share of struggling households unserved. The demographics of those most affected reveal another important layer of the crisis: the majority of cost-burdened renters are younger than 54, and most are living in one- or two-person households. The picture that emerges is of a working-age population stuck in an affordability trap, despite modest growth in housing stock in recent years.

The Statewide Reality

What’s happening in Flagler County is not an isolated trend—it mirrors a broader statewide crisis. Across Florida, more than 900,000 renter households earning below 60% AMI are spending at least 40% of their income on rent. Despite the construction boom of recent years, including the addition of more than a million new households and nearly a quarter-million multifamily units between 2019 and 2023, rents have surged far faster than incomes. Median rent in Florida rose nearly $500 a month—about 39%—in just four years, climbing from $1,238 to $1,719.

By 2023, more than half of Florida renters (56%) were cost-burdened, the highest proportion of any state in the country and well above the national average of 48%. Some studies put the figure even higher, approaching 62%. Compounding the problem is the disappearance of lower-cost units: over the past decade, the supply of rentals priced under $1,000 per month has plummeted by around 60% after inflation, as developers increasingly focus on luxury apartments and higher-end markets.

The consequences are already visible. Florida has seen a rise in homelessness, with the Shimberg Center estimating nearly 30,000 people without stable shelter—including thousands of unaccompanied youth. Tens of thousands more families are doubled up with relatives or living in temporary hotels and motels, unable to secure a long-term home.

Why It Matters

The affordability crisis has wide-ranging consequences. For many families, housing consumes so much of the household budget that other necessities—food, healthcare, education, transportation—are sacrificed. The stress on working families can erode quality of life, limit upward mobility, and even push households toward homelessness. At the same time, the heavy tilt toward luxury construction has reduced the supply of affordable units, tightening the squeeze on lower-income renters and shrinking opportunities for stability.

This imbalance also threatens long-term economic health. When workers cannot afford to live near their jobs, businesses face recruitment and retention challenges, and local economies suffer. Communities like Flagler County, which have experienced rapid growth and rising rents, illustrate just how quickly affordability gaps can widen without policy safeguards.

Moving Forward

Addressing the housing crisis requires action at multiple levels. Locally, counties like Flagler need to prioritize developments that provide housing for residents earning well below the median income, streamline approvals for affordable projects, and expand direct rental assistance to vulnerable households. At the state level, Florida must invest more heavily in preserving and expanding affordable housing stock, rather than allowing the market to be dominated by luxury projects. Expanding vouchers, encouraging inclusionary zoning, and tying incentives to affordability benchmarks are all steps that can prevent further erosion of housing stability.

Ultimately, the data from Flagler County serve as a warning bell for the rest of Florida. Rent affordability has reached a breaking point not only in small counties but across the entire state. Without coordinated, sustained action, more families will be forced to make impossible choices between shelter and survival. The solution is not just about building more housing—it’s about ensuring that Florida builds the right kind of housing, for the people who need it most.