In a year where a variety of economic pressures threatened multifamily real estate markets around the United States, South Florida remained a hotbed both in terms of high sales and low vacancy rates. Indeed, higher interest rates and lingering business struggles associated with the COVID-19 pandemic have seemed to intensify the influx of people moving to Florida.
A review of South Florida’s multifamily real estate market prepared by Cushman & Wakefield shows several signs of continued strength through 2022, including:
- Population surge — Through early October, more than 47,000 people moved to South Florida. This figure exceeded the total amount of new residents for all of 2021.
- Near-record sales — Over the first half of 2022, there were 367 multifamily property sales, with a cumulative value of approximately $5 billion. This is the second-highest total ever recorded over a six-month period.
- New construction — Developers are working to keep up with the heavy demand for residences in multifamily complexes. The report states that more than 39,000 units are under construction, which represents growth of more than 11 percent in the region’s total supply.
- Low vacancy rates — In Broward County, the vacancy rate among multifamily properties remained well below five percent. The market is even tighter in Miami-Dade, with an approximate three percent vacancy rate that is a historic low.
- Rising rents — Strong gains were noted among rent rates in Miami-Dade (7.5 percent) and Broward (5.3 percent) counties. Along with longstanding attractions such as the weather and business climate, the increased opportunity for remote work and growth in the local tech industry have boosted demand for South Florida residential rentals.
Whether you’re looking to develop a new multifamily project, purchase an existing apartment building or make your long awaited move to a South Florida condominium, the stakes are high in this competitive market. One mistake could destroy your chance to achieve your goals. That’s why your first step should be to hire a South Florida attorney with substantial experience successfully handling multifamily property transactions.
Norma Echarte & Associates in Miami represents parties in all types of South Florida multifamily property closings. You can schedule a consultation regarding your specific needs by calling 305-501-2844 or contacting us online.