South Florida Multifamily 2020 Forecast

PALM BEACH MULTIFAMILY MARKET SUMMARY* CONTINUED

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

NET ABSORPTION

DELIVERED UNITS

UNDER CONSTRUCTION

ASKING RENT PSF

ASKING RENT GROWTH

VACANCY

SUBMARKET

UNITS

ASKING RENT

2,208

$717

$0.91

2.2%

4.3%

2

-

0

Belle Glade

11,143

$1,915

$1.85

6.6%

5.0%

144

-

778

Boca Raton

12,187

$1,544

$1.48

3.3%

8.9%

257

490

663

Boynton Beach

5,470

$1,702

$1.55

6.0%

4.2%

46

-

261

Delray Beach

6,563

$1,173

$1.27

5.4%

5.2%

-96

-

0

Greenacres

Outlying Palm Beach County Palm Beach Gardens/ Jupiter Royal Palm Beach/ Wellington

193

$753

-

1.0%

3.3%

0

-

0

8,383

$1,699

$1.54

2.1%

6.0%

58

-

136

7,675

$1,598

$1.47

4.0%

9.8%

244

571

0

16,643

$1,361

$1.44

3.8%

6.1%

272

466

602

West Palm Beach

TOTAL/AVERAGE 70,465

$1,612

$1.59

4.3%

6.3%

927

1,527

2,440

• In 2019, there were 45 apartment sales totaling $870 million with an average price of $167,660 per unit or $180 per square foot. • Sales volume decreased by 42% from 2018.

• For 11th year in a row, average asking and effective rents were at record levels. • In 2019, average asking rents increased by 4.3%. • Boca Raton had the highest rents and the highest percentage rent increases in 2019.

• Vacancies increased in 2019 to 6.3% from 5.6% in 2018. • Royal Palm/Wellington and Boynton Beach have the highest vacancy rates. This is largely attributable to new supply.

• There are 2,440 units under construction This represents 3.5% of the current inventory in the market. • In the past five years, 9,188 units were delivered to the market.

• In 2019 net absorption was 927 units. Newly completed units totaled 1,527 units resulting in higher vacancy vacancies.

• In 2019, median salary income increased by 6.2%. • The population grew by 117,179 in the past five years, and 2.0% in 2019.

*Data as of Jan-2020, apartment sales of 10 units or more, in excess of $1MM in pricing, excluding all condo sales Source: CoStar

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