Miami Multifamily Report – October 2022
After a stellar run, South Florida is returning to a sustainable pace of growth.
Following an exceptional performance in 2021, South Florida’s multifamily market cooled to a more sustainable pace of growth. Overall rents grew 0.4 percent on a trailing three-month basis through August—20 basis points behind the U.S. rate—to $2,344. Year-over-year among large U.S. metros, only Orlando (16.9 percent) posted stronger growth than Miami (16.7 percent).
Trade, transportation and utilities (41,700 jobs) led employment gains in the 12 months ending in June, followed by leisure and hospitality (38,400 jobs). The metro’s travel industry rebounded rapidly, with traffic through Miami International Airport at 25.5 million passengers in the first half of the year. With business-friendly laws and top universities, Miami has been steadily growing its tech scene, fueled by the wide adoption of remote and hybrid work models. Tech trade association CompTIA found that a fifth of the 10,522 new tech jobs that Florida added last year were in Miami. The Sunshine State trailed only Texas (10,851 positions) in tech job growth in 2021, with California (5,165 new jobs)—a global tech staple—ranking third nationally.
Multifamily development shifted down a gear. Following the 18,070-unit record supply added to the metro’s inventory in 2021, only 9,351 apartments came online in Miami this year through August. Meanwhile, at $4.7 billion, investment volume was on par with 2021’s first eight months.