Miami Multifamily Report – Summer 2019
Alongside Houston, Miami was one of the only two major U.S. metros where annual rent growth fell below the 2.5 percent mark as of June.
Miami rent evolution, click to enlarge
Despite the 40,000 units coming online since the beginning of 2016, Miami’s multifamily market continues to be strong, fueled by above-trend job gains and population growth. Heavy supply, however, did leave marks: Alongside Houston (0.8 percent), Miami (2.2 percent) was one of the only two major U.S. metros where year-over-year rent growth fell below the 2.5 percent mark as of June.
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Metro Miami gained 52,300 jobs over 12 months, with education and health services and professional and business services accounting for roughly 60 percent of additions. Developers are ramping up office construction, but they are also betting on the metro’s entertainment hub status. Triple Five Group is moving forward with the American Dream Miami megamall after putting in place agreements for a massive amount of infrastructure near the site. The construction sector is expected to be one of the $4 billion project’s first beneficiaries. Additionally, Whitman Family Development landed a $550 million loan for the expansion of Bal Harbour Shops.
Miami sales volume and number of properties sold, click to enlarge
More than 26,000 units were underway across the metro as of June, and demand shows no signs of abating. Investor appetite remained high, particularly for Fort Lauderdale assets. With strong development matching elevated demand, we expect rents to advance at moderate levels for the foreseeable future, following national trends.
