South Florida Multifamily 2018 Mid-Year Update

MIAMI-DADE 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

3,351

$1,727

$1.71

1.6% $1,718

$1.71

1.4% 6.3% 48

-

Aventura

10,151

$1,301

$1.96

0.4% $1,293

$1.95

2.5% 6.0% 69

-

Bal Harbor/South Beach

10,702 $1,406 $1.94

1.9% $1,364

$1.88

0.6% 6.1% 34

38

Brickell/Downtown

2,801

$1,418

$1.99

1.5% $1,410

$1.98

3.8% 6.3% 3

-

Coconut Grove

6,321

$2,029 $2.37

2.8% $1,974

$2.30

4.4% 9.1% 321

173

Coral Gables

21,982 $1,264 $1.47

1.9% $1,253

$1.46

2.2% 1.9% 265

226

Hialeah/Miami Lakes

20,825 $1,006 $1.14

1.5% $999

$1.14

1.0% 3.1% 218

262

Homestead/South Dade

13,996 $1,617

$1.77

-0.1% $1,591

$1.74

-0.3% 6.8% 239

150

Kendall

33,910 $1,089 $1.33

2.2% $1,084

$1.32

2.5% 3.5% 246

141

Miami Gardens/Opa Locka

18,807 $1,670 $1.77

1.0% $1,637

$1.74

2.3% 5.7% 619

-

Miami Springs/Doral

18,573 $1,188 $1.49

1.6% $1,175

$1.48

2.3% 5.2% 88

-

North Miami Beach

Outlying Miami-Dade County

853

$1,488 $1.25

2.8% $1,486

$1.24

6.2% 3.3% 100

-

3,377 $1,290 $1.68

2.0% $1,277

$1.67

3.3% 2.4% 9

-

Westchester/Tamiami

165,649 $1,381 $1.62

1.5% $1,363

$1.60

1.9% 4.3% 2,259 990

TOTAL/AVERAGE

• In the first six months of 2018, there were 63 apartment sales totaling $450 million with an average price of $174,904 per unit or $191 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 1.5%. This was below the record 7.9% rent increase in 2015.

• Vacancies are at record lows. Some submarkets might experience short term vacancy increases in the coming months with new supply.

• There are 9,837 units forecasted for delivery to market. This represents only 5.9% of the current inventory in the market.

• Year-to-date net absorption was over 2,250 units, newly completed units totaled 990 units resulting in lower vacancies.

• By year-end 2018 median salary income in Miami-Dade is expected to increase by +/- 4.3%, one of the biggest increases since 2006. • The population grew by 146,000 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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