Yardi Matrix: Miami’s Booming Market
- Sep 14, 2016
Miami’s apartment market has fired on all cylinders for the last few years. Above-trend job growth combined with a growing population has produced favorable conditions for multifamily in South Florida.
Job growth has been the driving force behind Miami’s resurgence over the past eight years. New employment has been spread across sectors, including professional and business services, trade transportation and utilities, education and health services, and hospitality and leisure, indicating diversity and room for continued growth. Improving relations with Cuba will also be something to watch, as Miami’s economy stands to benefit from a new and close trading partner. Miami government and business leaders have been working to bring Chinese business and developers to North Miami to build a Chinatown neighborhood and add to the already substantial international population.
To keep up with demand, construction is on the rise. More than 10,000 units are expected to be added this year and next. While downtown Miami and its surrounding submarkets lead the way in terms of new product, the West Palm Beach and Fort Lauderdale regions are also showing strong supply increases. The metro’s growth outlook also has produced a wave of investment, as transaction volume hit $3.6 billion in 2015. With demand staying high, we expect rents will have another good year in 2016, growing by 7 percent.