MIAMI, FL - While growth in apartment inventory throughout South Florida has pushed occupancy down slightly, South Florida’s apartment fundamentals remain healthy thanks to strong labor market growth, according to Berkadia’s Q1 2017 South Florida Multifamily Report.
Leasing activity during Q1 2017 outpaced activity during the same time last year, with residents newly occupying 2,529 units. While 3,438 units were delivered, rental demand remained elevated nonetheless thanks to robust job growth – nearly every sector posted job gains over the past year, according to the report. Multifamily operators advanced monthly rent to $1,598 in March, an increase of about 2.1% year over year.
The report dramatically illustrates how rapidly Miami’s downtown is becoming a major population center, as renters show a preference for living in urban areas. The Miami submarket outperformed all other markets in South Florida, absorbing 1,327 rental units this quarter – more than twice as many units as the second-strongest market, North Dade.
“South Florida’s economy and apartment market continues to benefit from above-average population growth and job growth, and a cultural shift towards renting over homeownership,” said Mitch Sinberg, Senior Managing Director, Berkadia South Florida.
Added Berkadia South Florida Senior Managing Director Charles Foschini, “Strong apartment fundamentals, and an abundance of lenders in the market, make this an opportune time for multifamily investors to buy or refinance.”
About Berkadia: Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com