Southeast Florida Multifamily Report

Urban-core strength reinforces recovery. Amid a softening labor market and moderating immigration, Southeast Florida’s multifamily landscape remains on a solid footing, particularly as homeownership barriers continue to steer higher-income residents toward rentals. Class A vacancy in the region fell by more than 100 basis points in 2025 to below 6 percent, dropping close to the local Class B rate and a three-year low. This tightening has helped rents firm up among higher-end properties, aided by rising retention and signaling a more balanced supply-and-demand environment. Strong growth in office-using employment across the region’s commercial districts should continue to anchor rental demand, underscored by record office leasing in West Palm Beach in late 2025. This momentum is expected to reinforce net absorption as completions increasingly concentrate in urban cores. Meanwhile, suburban areas are experiencing a faster pullback in construction but could face greater exposure to weak job growth among lower-income workers. Miami-Dade County’s large foreign-born population may also heighten vulnerability to tighter immigration policies. Even so, Southeast Florida’s deep employment base and slowing delivery pipeline should sustain measured yet durable performance in 2026.