Miami Multifamily Report – February 2024
More than 16,000 South Florida units came online in 2023.
For South Florida, 2023 was a year of slow growth and moderation. Year-over-year, rents improved by only 0.4 percent, but this was in line with the deceleration that occurred across the country, with U.S. rates up just 0.3 percent, to $1,709. In the shorter term, Miami rates slid 0.2 percent in the fourth quarter, to $2,384. Meanwhile, demand stood firm in the face of an unprecedented wave of new supply, with occupancy at 95.5 percent as of November, 70 basis points above the U.S. figure.
Miami unemployment was at a very tight 1.4 percent as of November, according to preliminary data from the Bureau of Labor Statistics. The metro’s workforce expanded by 2.7 percent, or 78,500 jobs, in the 12 months ending in October 2023, with trade, transportation and utilities accounting for almost a third of gains. Despite recording the lowest unemployment rate among major Florida metros and outpacing the U.S. (3.7 percent), two sectors—information and construction—lost 3,600 jobs combined.
A total of 16,194 units came online in South Florida in 2023, following more than 30,000 apartments developers delivered over the previous two years. Construction activity remains high, with another 44,324 units underway as of December. Deals cooled off following two exceptional years for investment, when $15.9 billion in multifamily assets changed hands. Transaction volume in 2023 was only $2.5 billion, but the per-unit average stood some $78,000 above the $185,172 U.S. figure.
