The Real Deal Miami

More South Florida apartment weakness

September 11, 2009 03:57PM

Apartment vacancies in Miami-Dade and Palm Beach counties will keep climbing, according to brokerage Marcus & Millichap. In Miami-Dade County, the vacancy rate climbed to 5.8 percent in the second quarter, a level last reached five years ago, and additional job losses will likely stifle rental housing demand for the rest of the year. In Palm Beach County, the vacancy rate is expected to rise 150 basis points to 9.4 percent, after a 10 basis point decline last year. Asking rents there are forecast to decrease 3.8 percent this year to $1,067 per month, following a 0.4 percent drop in 2008. Effective rents are expected to decline 4.8 percent to $991 per month, one year after sliding 0.7 percent. Miami monthly asking rents are forecast to fall 3.2 percent to $1,069 per month. Effective rents are expected to decrease 4.4 percent to $995 per month. Last year, asking rents receded 1.1 percent, while effective rents declined 2 percent. TRD