What can you get with interim New College president's housing allowance in Sarasota? Not as much as you'd think

An initial reaction to incoming interim New College of Florida President Richard Corcoran's $84,000 annual housing allowance may be visions of gulf front estates, warm breezes or the white sand beaches of Siesta Key as likely places for him to live under his new compensation package, which also includes a $699,000 base salary.

But the truth is that even the $7,000 per month housing perk would likely not be enough for Corcoran to cover the expenses of leasing or buying a home in the Sarasota-Manatee area that would meet the expected lodgings of a college president.

That's assuming he'll move to the area. The newly written contract, expected to be confirmed by the state university system's Board of Governors next week, does not appear to include any residency requirements.

25 days that shook New College: How Ron DeSantis swiftly transformed the Sarasota school

Recent real estate coverage:Rent a room and lose your homestead exemption? Supreme Court case with Sarasota ties could decide

Take this prime real estate opportunity courtesy of Zillow.com: Three beds, two baths, 1,832-square-foot house built in 1978 on Hampton Road in Sarasota. There is a pool.

Monthly rent: $7,000.

"This wonderful home has all you need for the perfect vacation retreat. The master bedroom features a king-sized bed, walk in closet, dual sinks in the bath, the guest bedrooms both have queen beds and there is an office that opens onto the spacious screened Lanai and pool area," the listing reads.

It's hard to imagine fundraiser dinners at such a residence.

A search of other listings shows a 900-square-foot, shack-like one bed, one-bath for rent for more than $5,000.

Jill Lyons, owner of Relax Property Management, has been a real estate agent in the rental business for 17 years in Sarasota. She said Corcoran could not have picked a worse time of the year to be searching for a house as snowbirds seek refuge from the harsh winter months.

"You get nothing from now to April," she said.

She said in that price range she could find the interim New College president plenty of two-bedroom condos, especially if he needs month-to-month accommodations and fully furnished housing.

Lyons said that the rental market has slowed some at the higher end.

"Last year you couldn't keep anything on the market," she said. "But this year, the $3,500-and-up segment has behaved more like before" the COVID-19-induced increased migration to Florida.

While the higher end has seen some moderation in activity, any property for rent for less than $3,000 would be snatched up "almost immediately."

"The lower end of the rental market is still very much in a frenzy," Lyons said.

While many other areas across the country have seen rental prices start to creep down, rents in Southwest Florida have been on the increase, at least partially due to Hurricane Ian knocking out some supply and displaced homeowners seeking rentals while repairs take place.

Rents in Sarasota are up by 46.9% since March 2020, the start of the pandemic.

More:Sarasota-Manatee home appreciation still well above nation average, but now past the peak

Lyons said if Corcoran could sign an annual lease, there could be some nice properties in Lakewood Ranch area in the $8,000 to $10,000 per month range, if he didn't mind a bit of a commute.

But that would mean he would have to dip into the base salary the college is set to pay its new interim president.

The best option may be to buy, though even then, a dollar doesn't go as far these days. Escalating interest rates that are as nearly as high as they've been in two decades, eat into purchasing power. The payment on a $1.15 million, 30-year fixed mortgage with a mortgage rate at 6.055% would be $6,936, according to Google's monthly payment calculator.

These days, that total would get a home that is about 2.5 times the median price for a home sold in Sarasota County last month, $451,000.

This article originally appeared on Sarasota Herald-Tribune: Tough Sarasota housing market will face incoming New College president