Miami Multifamily Report – June 2023
Hot South Florida market cools down, with above-average rent growth but slowing investment.
South Florida’s multifamily market continued to stabilize, following two fast-paced years. As of April, Miami’s average asking rate posted a consistent 4.5 percent year-over-year increase, to $2,397, ranking sixth nationally for rent growth. U.S. rates rose only 3.2 percent, to $1,709. Meanwhile, at 96.0 percent as of March, the occupancy rate in stabilized properties remained 100 basis points above the national figure, as demand endured in the face of recession fears.
The unemployment rate in South Florida dropped to 2.2 percent in March, according to preliminary data from the Bureau of Labor Statistics, leading both the state (2.6 percent) and the U.S. (3.5 percent). The job market expanded by 84,800 jobs, or 4.1 percent, in the 12 months ending in February, with trade, transportation and utilities (19,100 positions) leading gains. Only one sector recorded contractions—mining, logging and construction lost 2,900 jobs. Miami is moving forward with several multibillion-dollar projects that are luring in well capitalized investors and supporting job growth. A Terra-led group spent $1.2 billion for the largest undeveloped waterfront site in the city’s urban core. In the Wynwood Arts District, an L&L Holding Co. joint venture began work on a 1 million-square-foot campus.
With economic growth ebbing across the country, both investment and development activity in Miami decelerated. In the first four months of the year, $516 million in multifamily assets traded, and developers brought 2,732 units online.