New multifamily construction to test the South Florida market
This year developers are expecting to finish construction of 15,200 new apartments across South Florida
From the June issue: Demand remains robust for rental housing in Miami and the rest of South Florida, among residents and real estate investors alike. But despite the area’s population and employment growth, some market watchers say South Florida’s extended, postrecession rise in monthly rents could slow or stop if overbuilding floods the market with units.
National brokerage Marcus & Millichap predicts developers this year will finish construction of 15,200 new apartments across South Florida, including 5,700 units in Miami-Dade County, 5,000 in Broward County and 4,500 in Palm Beach County.
Even with all the added inventory, Marcus & Millichap forecasts the annual rent hikes in 2017 will accelerate in Miami-Dade to 4.4 percent (from 3.9 percent in 2016) and in Broward to 4.7 percent (from 4.6 percent) while slowing slightly in Palm Beach to 3 percent (from 3.3 percent). [more]