In 2021, the Miami market had one of its best years in decades, with some fundamentals hitting records. High demand coming from a steady inflow of high-wage workers pushed up rents at a dizzying rate. Last year, rates increased by 23.5 percent, placing Miami in the third spot nationally among major metros. The average rent clocked in at $2,133, while the U.S. figure stood at $1,594.
After peaking at 15.2 percent in July 2020, Miami unemployment began to steadily improve, reaching 3.8 percent in October 2021—the lowest rate since the onset of the health crisis. Underpinned by its business-friendly climate, the metro continues to see an acceleration in financial and tech companies relocating to the area, with West Palm Beach among preferred destinations. To accommodate economic growth, authorities are planning several infrastructure improvements. Florida is set to receive roughly $245 million for bridge repairs under the bipartisan $1.2 trillion infrastructure package, but funds for road improvements, septic-to-sewer conversions and sea-level-rise projects are also expected.
Multifamily investment and development reached new highs in 2021. A record-breaking $7.4 billion in deals closed last year, while completions hit an unprecedented 16,221 units. Yardi Matrix expects the Miami rental market to continue to perform well in 2022, but growth will most likely moderate.