Multifamily Construction Pipeline Reaches Record
S. Fla. developers are set to finish 23,863 multifamily units by 2024’s end, the most since 2002. More units on the market are expected to slow rent and leasing growth.
MIAMI – Berkadia's mid-year multifamily report found that by the end of 2024, developers will finish 23,863 multifamily units across South Florida, the highest number since 2002. There are approximately 34,934 units that are under construction in the tri-county region.
The report also found that apartment occupancy has declined since the first half of 2023, down 10 basis points to 95% for the first half of 2024. The decline was less severe than the 200-basis point occupancy rate drop between 2022's first six months and the first half of 2023.
In South Florida, the average monthly rent rose 0.6% to $2,530 in the first half of 2024 from the same period in 2023. With more multifamily units expected to reach the market, rent and leasing growth is likely to slow from South Florida's 25.2% increase between mid-2021 and mid-2022.
The report does indicate, however, that by the end of June, apartment absorption of 10,856 units outpaced the delivery of 9,840 new units, and this year's absorption is expected to be 25,870 units, more than expected deliveries.
South Florida's occupancy will tick up to 95.2% by year-end, the report says. The largest development pipelines are in downtown Miami and South Beach, with 6,224 units under construction, followed by Fort Lauderdale with 4,309 units expected.
Source: The Real Deal (08/05/24) Dinkova, Lidia
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