South Florida Multifamily 2018 Mid-Year Update
PALM BEACH 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
2,155 $715
$0.90
1.5% $711
$0.90
1.6% 6.2% 14
-
Belle Glade
13,837 $1,827
$1.75
2.2% $1,795
$1.72
2.5% 8.0% 322
-
Boca Raton
11,420 $1,439
$1.38
2.2% $1,417
$1.35
2.3% 11.0% 488
817
Boynton Beach
5,747 $1,675
$1.53
1.3% $1,644
$1.51
2.8% 6.3% 276
34
Delray Beach
7,331
$1,125
$1.20
2.0% $1,122
$1.19
2.9% 3.6% 51
-
Greenacres
Outlying Palm Beach County Palm Beach Gardens/ Jupiter Royal Palm Beach/ Wellington
193
$676
$1.07
0.8% $674
$1.07
0.8% 3.2% 0
-
7,887 $1,579
$1.45
-0.1% $1,567
$1.44
0.0% 7.9% 136
353
6,672 $1,490
$1.36
0.8% $1,475
$1.35
0.8% 7.0% 193
245
16,460 $1,340
$1.41
1.7% $1,326
$1.40
2.6% 5.9% 251
-
West Palm Beach
71,702 $1,506 $1.48
1.6% $1,486 $1.46
2.1% 7.1% 1,731
1,449
TOTAL/AVERAGE
• In the first six months of 2018, there were 33 apartment sales totaling $931 million with an average price of $198,770 per unit or $170 per square foot.
• For a tenth year in a row, average asking and effective rents were at record levels. Year-to- date, average asking rents grew by 1.6%. This was below the record 9.6% rent increase from 2015.
• Vacancies decreased to 7.1% from a six year high of 7.6%.
• There are 2,911 units forecasted for delivery to market. This represents only 4.1% of the current inventory in the market.
• Year-to-date net absorption was almost 1,750 units. Net absorption outpaced deliveries by almost 300 units contributing to lower vacancy rates.
• By year-end 2018, median salary income in Palm Beach is expected to increase by +/- 5.1%, significantly above 2016 levels of 3.8%. Population grew by 133,000 in the past five years.
*Data as of July-2018, apartment sales of 10 units or more, in excess of $1MM in pricing, excluding all condo sales Source: CoStar
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