South Florida
MULTIFAMILY
REPORT
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2024 | MID-YEAR
Annual Rent Change
Annual Inventory CHANGE
Deliveries & Absorption
Employment
Rent & Occupancy
Sales
Jobs Added / Lost*
LAST 12 MONTHS
73,200
2.5% YOY
Unemployment*
June 2024
2.9%
50 BPS YOY
The South Florida market presents a well-diversified and dynamic economy, with tourism, professional and business services, private education and healthcare, aviation and aerospace, and trade and logistics significantly contributing to the region’s overall employment. During the 12-month period ending in June 2024, the Miami-Fort Lauderdale-West Palm Beach, FL, metro area employers added a net 73,200 jobs. A recent significant corporate expansion this year was JPMorgan Chase doubling their downtown Miami office space, adding a new office in West Palm Beach, and adding 400 additional employees at their Brickell office location. Given South Florida’s attractive lifestyle of warm climate, beautiful beaches, luxurious hotels, and premium entertainment/nightlife, the leisure and hospitality industry plays a significant role in the local economy. The sector added 16,600 new positions during the same 12-month period, expanding by 4.9% overall. With a 4.1% expansion annually, the private education and health sector led all others in total positions added annually, with 18,200. There is a notable presence in the Miami Health District, which includes the University of Miami’s Miller School of Medicine and Life Science Park, six hospitals, and multiple specialty care centers. Due to South Florida’s strategic location, the region is a key gateway for trade, particularly with Latin America. This supports a robust trade, transportation, and utilities sector, which added 13,100 new positions over the past year and expanded by 2.0% overall.
EMPLOYMENT
JPMorganChase expands in South Florida
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Kaseya moving more employees into 800 Brickell
READ MORE
Concention Center expansion project: a vision becoming realty
READ MORE
EMPLOYMENT TRENDS
IN THE NEWS
For nearly a decade, the construction pipeline in the South Florida apartment market has been highly active each year. During the past five years, the market has delivered an average of 12,458 units annually. Apartment construction has been trending towards focusing mainly on luxury units rather than more affordable inventory, benefitting from a significant migration of more high-income residents from the Northeast and West regions of the country. Also driving leasing is the high cost of homeownership stalling sales. Brickell is an example of a fast-growing community within the market seeing a boom in luxury development and a migration of major companies, attracting more renters to the neighborhood. To date, in 2024, the market has delivered 9,840 apartment units with expectations to finish the year with a record number of deliveries. Projections indicate 23,863 units will be delivered by year-end; the highest total recorded with data dating back to 2002. The next highest annual total was back in 2021, with 14,339 units, nearly 10,000 units less than the projected total for 2024. Currently, 34,934 units are under construction in South Florida. Even with the forecasts of a record year for deliveries, net absorption is outpacing the robust pipeline. Year to date, there have been 10,856 net move-ins. By year-end, renters are projected to absorb 25,870 net units. This significant level of absorption speaks to the type of elevated demand the apartment market is currently experiencing.
Deliveries & Absorption
The South Florida apartment market has experienced consistent rent growth annually since 2009, except in 2020, when the pandemic caused a negative shift. The market rent immediately rebounded, reporting an average annual growth of 14.1% from 2021 to 2023. The sharp rise in rent can be attributed to the depth of new Class A apartment inventory and the charging of much higher rents. In addition, the gap between the supply of affordable housing and the demand for it is likely to also result in higher rent growth for Class B and C units. During the second quarter of 2024, rent growth moderated. The average monthly apartment rent finished at $2,530, a 0.6% increase year over year. Projections indicate rents will reach $2,529 by the fourth quarter, increasing 1.4% year-over-year. For the past decade, the market’s annual average occupancy rate has been healthy, only slightly dipping below 95% once. During the second quarter of 2024, the average occupancy rate finished at 95.0%, a decrease of 10 basis points year over year, but outpaced the national average by 80 basis points. By the end of the year, the average occupancy rate will reach 95.2%, an annual increase of 50 basis points and 80 basis points higher than the national average.
RENT & OCCUPANCY
2024 Year to Date*
VOLUME
$1.8B
CAP RATE (AVG)
5.1%
Price Per Unit (AVG)
$321,855
TRANSACTIONS
17
WHAT’S TRADING?*
BUILDINGS (AVG)
9
ACRES (AVG)
15.73
YEAR BUILT (AVG)
2000s
UNITS (AVG)
331
Sources: MSCI Real Capital Analytics; CoStar Group; Berkadia Research
SALES
2024 YEAR TO DATE
DELIVERIES
9,840 UNITS
2024 TOTAL*
ABSORPTION
10,856 UNITS
DELIVERIES
23,863 UNITS
ABSORPTION
25,870 UNITS
Effective rent
Q2 2024
$2,530
0.6% YOY
OCCUPANCY
Q2 2024
95.0%
10 BPS YOY
*$50m+
SELLER
Starwood Capital Quarterra AMLI Nuveen Mainstreet Cap Partners
Miami Beach, FL Miami, FL New York, NY New York, NY Fort Lauderdale, FL
LOCATION
Buyer
Brookfield AM KKR Pantzer Properties Cardone Capital Ares Management
Toronto, ONT New York, NY New York, NY Aventura, FL Los Angeles, CA
Location
Top Buyers*
Top Sellers*
BACK TO TOP
*Projected
Source: RealPage
Y-o-Y Effective Rent Change
( 1 . 9%) - ( 1 . 5%)
( 1 . 4%) - 0. 0%
0. 1 % - 0. 7%
0. 8% - 1 . 8%
1 . 9% - 4. 7%
1. Boca Raton
2. Boynton Beach / Delray Beach
3. Coral Gables / South Miami
4. Coral Springs
5. Downtown Miami / South Beach
6. Fort Lauderdale
7. Hialeah / Miami Lakes
8. Hollywood
9. Homestead / South Dade County
10. Lake Worth / Greenacres / Wellington
11. Margate / Coconut Creek / North Lauderdale
12. Miami Gardens
13. North Central Miami
14. North Palm Beach County
15. Northeast Miami
16. Pembroke Pines / Miramar
17. Plantation / Davie / Weston
18. Pompano Beach / Deerfield Beach 19. Sunrise / Lauderhill
20. West Miami / Doral
21. West Palm Beach
22. Westchester / Kendall
SUBMARKET BOUNDARIES
South Florida submarkets with the lowest rents posted higher annual increases than others. The North Central Miami submarket significantly outperformed all other submarkets by increasing 14.8% year over year to $2,096. The next highest submarket in rent growth was the Homestead/South Dade County submarket, with an annual increase of 4.7% to $2,085. The North Central Miami and Homestead/South Dade County submarkets have the two lowest rents in South Florida. These significant rent increases compared to other submarkets may be attributed to the influx of Class A apartments in the market overall, which puts more pressure on Class B and C apartments. Submarkets with some of the highest average rents showed minimal gains or an annual decrease. The remaining submarkets collectively had an average annual rent increase of 0.5%.
SUBMARKET MID-YEAR 2024 ANNUAL RENT Change
Annual Inventory Change
0.0% - 1.0%
1.1% - 2.1%
2.2% - 2.5%
2.6% - 3.6%
3.7% - 7.9%
1. Boca Raton
2. Boynton Beach / Delray Beach
3. Coral Gables / South Miami
4. Coral Springs
5. Downtown Miami / South Beach
6. Fort Lauderdale
7. Hialeah / Miami Lakes
8. Hollywood
9. Homestead / South Dade County
10. Lake Worth / Greenacres / Wellington
11. Margate / Coconut Creek / North Lauderdale
12. Miami Gardens
13. North Central Miami
14. North Palm Beach County
15. Northeast Miami
16. Pembroke Pines / Miramar
17. Plantation / Davie / Weston
18. Pompano Beach / Deerfield Beach 19. Sunrise / Lauderhill
20. West Miami / Doral
21. West Palm Beach
22. Westchester / Kendall
SUBMARKET BOUNDARIES
During a highly active year for developers in the South Florida apartment market, certain submarkets stand out. The Homestead/South Dade County led all submarkets in annual inventory growth, expanding 7.9% in the past 12 months. Builders are capitalizing on the availability and affordability of land in Homestead as residents look to move out of more expensive areas like Miami and Kendall. North Central Miami and West Palm Beach submarkets rounded out the top three, with 6.1% and 5.4% inventory growth, respectively. The West Palm Beach submarket, with 1,701 new deliveries, had the highest volume of new supply. In terms of units under construction, the Downtown Miami/South Beach submarket led the pack, with 6,224 units currently under construction. The following submarket was the Fort Lauderdale submarket, which has a robust 4,309 units currently under construction.
SUBMARKET MID-YEAR 2024 ANNUAL Inventory Change
SUBMARKET MID-YEAR 2024 ANNUAL Inventory Change
SUBMARKET MID-YEAR 2024 ANNUAL RENT Change
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© 2024 Berkadia Real Estate Advisors LLC
Berkadia® is a trademark of Berkadia Proprietary Holding LLC Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. This website is not intended to solicit commercial mortgage loan brokerage business in Nevada. Investment sales and realestate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx
The information contained in this flyer has been obtained from sources we believe to be reliable; however, we have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. While we do not doubt its accuracy, we have not verified it and neither we, nor the Owner, make any guarantee, warranty or representation of any kind or nature about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example and do not necessarily represent past, current or future performance of the property. You and your advisors should conduct a careful and independent investigation of the property to determine to your satisfaction the suitability of the property and the quality of itstenancy for your records.
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South Florida
Under Construction/Lease-Up
Lease-Up
Under Construction / Lease-Up
Lease-Up
Deliveries
Absorption
Effective Rent Change
Source: RealPage
Source: RealPage
National Effective Rent
South Florida vs. National Effective Rent & Occupancy
South Florida Occupancy
SUBMARKET PERFORMANCE
Source: Moody’s Analytics
Source: RealPage
West Palm Beach Westchester/Kendall
94.3% 95.6%
0 -90
$2,275 $2,280
1.5% 3.8%
Margate/Coconut Creek/North Lauderdale Miami Gardens North Central Miami North Palm Beach County Northeast Miami Pembroke Pines/Miramar Plantation/Davie/Weston Pompano Beach/Deerfield Beach Sunrise/Lauderhill West Miami/Doral
94.7% 94.0% 96.5% 94.2% 95.1% 95.8% 94.7% 95.6% 93.6% 94.6%
-10 10 -150 70 -40 -10 -30 -80 -100 20
$2,220 $2,106 $2,096 $2,512 $2,588 $2,489 $2,550 $2,212 $2,162 $2,731
-0.7% -1.6% 14.8% -0.3% 1.5% -1.5% 0.4% 1.5% -1.5% 1.2%
Boca Raton Boynton Beach/Delray Beach Coral Gables/South Miami Coral Springs Downtown Miami/South Beach Fort Lauderdale Hialeah/Miami Lakes Hollywood Homestead/South Dade County Lake Worth/Greenacres/Wellington
94.2% 95.1% 95.0% 95.2% 95.5% 93.5% 97.2% 92.8% 96.1% 95.0%
50 60 0 -50 70 50 -100 10 -60 -30
$2,822 $2,397 $2,927 $2,345 $3,286 $2,873 $2,166 $2,442 $2,085 $2,287
0.7% 0.1% 1.2% -1.9% 0.5% -0.5% 3.7% 1.8% 4.7% 1.0%
Q2 2024 Occupancy
YOY (BPS)
Q2 2024 Effective Rent
YOY
1/3
2/3
3/3
ANNUAL INVENTORY CHANGE
DELIVERIES & ABSORPTION
EMPLOYMENT
ANNUAL RENT CHANGE
SALES
RENT & OCCUPANCY
SUBMARKET MID-YEAR 2024 ANNUAL RENT Change
SUBMARKET MID-YEAR 2024 ANNUAL Inventory Change
Deliveries, Absorption, & effective rent change
Market Pipeline
Top submarket pipelines
Under Construction
Under Construction
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Unemployment Rate
Total Jobs
South Florida Effective Rent
National Occupancy
Effective rent and occupancy reflect stabilized properties and does not include preleased units or properties in lease-up. A newly constructed property is considered stabilized once it becomes 85% occupied.
*Seasonally Adjusted
4. 8% - 1 4. 8%
4. 8% - 1 4. 8%
