Fort Lauderdale Multifamily Investment Forecast
Relocation Sparks Leasing Boom;
Institutional Investors Take Notice
Climate and COVID-19 considerations fuel in-migration. Fort Lauderdale has been a beneficiary of remote work policies adopted in other markets, leading rental demand to escalate during the pandemic period. In addition to retirees, the metro has attracted younger workers looking for a warmer climate and relaxed COVID-19 policies. Surging home prices are prompting more of these individuals to consider the advantages of multifamily living, bolstering rental needs and fostering an absorption surge last year. A similar rate of household formation is expected in 2022 that will coincide with a moderation in construction activity. Developers are following renter demand as the majority of units added will open in Fort Lauderdale proper and Hollywood, the two submarkets with the strongest absorption tallies entering this year. Minimal construction is slated to open in Pembroke Pines-Miramar in 2022 despite sub-2 percent vacancy and relatively high net absorption, pushing rents higher.