Q3 2017 - Multifamily Market Update Newsletter

BROWARD MULTIFAMILY MARKET SUMMARY* CONTINUED

MU LT I FAM I LY I NVE S TMENT | SOUTH F LOR I DA T E AM

ASKING RENT GROWTH

EFFECTIVE RENT GROWTH

ASKING RENT

ASKING RENT PSF

EFFECTIVE RENT

EFFECTIVE RENT PSF

NET ABSORPTION

DELIVERED UNITS

SUBMARKET

UNITS

VACANCY

21,543 $1,451

$1.39

1.8% $1,425

$1.37

1.3% 7.1% 47

155

Coral Springs

16,022 $1,612

$1.82

4.5% $1,572

$1.78

8.4% 10.9% 637

1,590

Fort Lauderdale

11,560 $1,251

$1.47

5.0% $1,210

$1.43

2.5% 5.3% 69

-

Hollywood/Dania Beach

5,216 $1,148

$1.31

2.3% $1,142

$1.30

2.5% 4.3% -29

-

Miramar/Hallandale Beach

13,374 $1,150

$1.30

3.6% $1,117

$1.27

1.7% 4.0% 147

-

Oakland Park/Lauderhill

Pembroke Pines/West Miramar

9,741

$1,746

$1.59

3.8% $1,707

$1.55

2.7% 6.5% 338

-

17,819 $1,469

$1.43

1.8% $1,453

$1.41

1.9% 6.7% 188

48

Plantation/Sunrise

Pompano Beach/Deerfield Beach

14,887 $1,217

$1.33

1.8% $1,200

$1.32

2.0% 5.5% 284

92

8,544 $1,506

$1.49

1.9% $1,483

$1.47

1.7% 7.7% 233

263

Weston/Davie

118,706 $1,417 $1.46

3.0% $1,391 $1.43

3.1% 6.3% 1,914 2,148

TOTAL/AVERAGE

• In the first nine months of 2017, there were 63 apartment sales totaling $1.410 billion with a median price of $118,318 per unit or $150 per square foot.

• For a ninth year in a row, average asking and effective rents were at record levels. Year-to- date, average asking rents grew by 3.0%. This is below the record 7.9% rent increase in 2015.

• Vacancies increased in 2017 to 6.3%, the 2nd highest over the past 6 years. This was due to new supply continuing to out-pace net absorption.

• There are 5,499 units forecasted for delivery to market. This represents only 4.6% of the current inventory in the market.

• Year-to-date there were 234 more units delivered than absorbed in Broward. This is another indication of supply outpacing demand which in turn results to higher vacancy rates.

• By year-end 2017 median salary income in Broward is expected to increase by +/- 3.7%, one of the biggest increases since 2006. • Population has grown by 99,280 in the past five years.

*Data as of October-2017, apartment sales of 10 units or more, in excess of $1MM in pricing, excluding all condo sales

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