The Real Deal Miami

Miami apartment sector overcomes tepid job growth

Rental market outperforms most of nation in quarterly report
November 07, 2013 01:00PM

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Buoyed by surging rents and strong occupancy, the Miami-Dade County apartment market remains one of the nation’s best, according to a new market report released today by brokerage Marcus & Millichap Real Estate Services.

In a sign of continued demand for rental housing, county apartment landlords have enjoyed an increase in occupied units of 1,700 through the third quarter of 2013. That boost came despite a paucity of new jobs created.

Investors continue to clamor for multi-family properties and have little trouble securing acquisition financing.

The brokerage projects a scant 3 percent vacancy rate in Miami-Dade County by the end of the year. Market rents are poised to rise 4.9 percent to $1,191 per month. Average rents gained 2.3 percent in 2012.

New construction could eventually flood the market with unfilled units, however. Apartment developers are expected to complete 2,500 units in the county this year, up from about 900 units built in 2012. – Eric Kalis