Despite another record development year, Miami’s healthy economy and rapidly growing population continue to bolster the metro’s multifamily market. Roughly 13,300 apartments were delivered last year and another 26,793 units were underway as of February, signaling another strong year for multifamily construction.
Metro Miami added 52,300 jobs in 2018, with leisure and hospitality—a local staple—continuing to drive growth. The state’s tourism marketing agency reported an all-time record for visitors last year, with 126.1 million out-of-state tourists. This, coupled with strong in-migration, has maintained Miami as one of the most traffic-congested cities in the country, according to research by traffic data firm INRIX. In an effort to relieve pressure and support the metro’s infrastructure, an $802 million project that will rebuild parts of Interstate 395 and construct a new bridge between Miami and Miami Beach has broken ground.
Concerns about the metro’s capacity to absorb the large amount of recently delivered units have been largely mitigated. However, with developers continuing to bring projects online, rent growth is bound to remain moderate. With 16,320 units slated to come online in 2019 for yet another cycle peak, Yardi Matrix expects Miami rents to advance 2.1 percent this year.