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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