Matrix Multifamily Miami Report – Winter 2019
The metro’s multifamily deliveries reached a cycle peak in 2018, boosted by population and employment gains, while investors mostly targeted Fort Lauderdale assets.
Miami’s strong and diversifying economy, employment gains and population growth continue to fuel rental demand, despite a new cycle high for deliveries. More than 11,300 units came online in 2018 through October, surpassing 2017’s total. Meanwhile, investor appetite remained high, especially in the case of Fort Lauderdale assets.
The metro added 94,800 jobs in the 12 months ending in September, with a significant increase in construction jobs—up 22 percent for the year—due to intense development activity. Leisure and hospitality (19,500 jobs), professional and business services (18,400) and trade, transportation and utilities (17,000) led gains. The metro is solidifying its status as an entertainment epicenter, with billion-dollar mixed-use projects such as the recently approved Freedom Park and Soccer Village offering everything from sports arenas to office space and hotels. South Florida’s expanding infrastructure, including the upcoming Brightline routes to Tampa and Orlando, is also anticipated to create thousands of jobs in the region.
Roughly 26,600 units were underway in the metro as of October, but the area’s rapid demographic growth is bound to keep demand high for the foreseeable future. With South Florida’s economy likely to continue adding jobs at a healthy pace, Miami rents should also continue to steadily rise.