Southeast Florida Multifamily Market Report
2024 Investment Forecast
Homeownership Hurdles Stand Out
Nationally, Driving Apartment Demand
Normalizing growth trends accompany record supply influx. West Palm Beach, Miami and Fort Lauderdale ranked first, second and fourth, respectively, among major U.S. markets in home price appreciation between 2019 and 2023. Combined with elevated mortgage rates, more new residents are funneling into the regional renter pool, while potential first-time homebuyers continue to lease apartments. Corporate relocations, amid Florida’s favorable tax climate, are benefiting demand for Class A units, given a local household income growth rate that ranks among the largest in the country in 2024. As a result of these dynamics, net absorption in Southeast Florida is set to more than double 2023’s total this year. Tempered overall migration trends due to the region’s elevated affordability hurdles will, however, challenge this improved apartment demand in the near-term. Notable supply pressure is also a headwind as the region welcomes 5,400 more units this year than the previous all-time high. Completions in Miami will account for nearly half of this new stock, though Fort Lauderdale’s inventory expands at a faster pace of 3.2 percent. In turn, the region’s vacancy rate will remain above its 4.7 percent historical average.