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South Florida

New rental apartments in Broward outpacing demand: report

A graph of submarket vacancy rates in Broward County (Credit: Marcus & Millichap)
A graph of submarket vacancy rates in Broward County (Credit: Marcus & Millichap)

The stock of newly built apartments in Broward County is growing faster than demand, and vacancy rates are expected to rise this year, according to a recent report by Marcus & Millichap.

With 3,500 new units expected to open by the end of this year, the report predicts 2,800 rentals will be absorbed, causing the county’s vacancy rate to rise to 5 percent.

Hollywood and Pembroke Pines tied for the lowest vacancy rate in the county at 3.5 percent. Fort Lauderdale had the highest vacancy rate at 8 percent.

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Although a significant portion of the new units are expected to be vacant, older complexes built in the 1980s and 1990s are enjoying decreasing vacancy rates from the previous year.

The average rent in the county is predicted to grow to $1,384 by the end of the year due to an increase in high-end apartments being built, according to the report.

The report also stated 4,800 people moved to the county last year, up from 3,700 the year before that. It attributes the influx of new arrivals to a growing job market. The area’s median income of $68,000 is too low to purchase a median-priced home, meaning demand for rental homes will likely remain high.

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Marcus Millichap