While multi-family construction is on the rise, Miami-Dade County’s rental inventory remains nearly 19,000 apartments behind the market peak established 13 years ago, a new report from Marcus & Millichap shows.
With most of the county’s new condo and single-family construction aimed at high-end buyers, rentals are still the most realistic housing option for the broader Miami-Dade market, according to the firm’s fourth-quarter Apartment Research Market Report. Developers are on pace to add 2,900 apartments to the county in 2014. That would exceed 2013 construction by 425 units.
Marcus & Millichap forecasts a small vacancy decline in Miami-Dade from 3.3 percent in 2013 to 3.2 percent in 2014. Rents are expected to rise 3 percent to $1,244 per month. The county had a 6.4 percent surge in monthly rents in 2013.
Multi-family property sales are increasing throughout Miami-Dade. In the past year, transaction velocity jumped 30 percent. Smaller investors are taking advantage of improved access to debt, with sales of communities with 50 units or less rising 35 percent. — Eric Kalis