South Florida Multifamily 2020 Forecast

MIAMI-DADE 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

2,778

$1,789

$1.78

4.6%

6.2%

30

-

108

Aventura

Bal Harbor/ Miami Beach

9,431

$1,344

$2.00

1.5%

4.8%

-36

42

0

13,830

$1,438

$1.88

1.3%

4.0%

5

-

7,228

Brickell/Downtown

2,240

$1,625

$2.06

0.7%

5.5%

14

10

130

Coconut Grove

6,771

$1,991

$2.30

0.8%

9.0%

272

338

1,394

Coral Gables

22,366

$1,354

$1.55

2.1%

2.6%

298

400

371

Hialeah/Miami Lakes

Homestead/ South Dade

19,125

$1,089

$1.24

2.4%

4.4%

654

929

1,282

13,870

$1,710

$1.91

2.6%

8.1%

-165

294

439

Kendall

Miami Gardens/ Opa Locka

31,135

$1,148

$1.39

3.6%

4.3%

175

468

1,407

18,864

$1,797

$1.92

3.6%

7.5%

619

1,297

2,618

Miami Springs/Doral

North Miami/ North Miami Beach Outlying Miami-Dade County

18,219

$1,273

$1.57

1.0%

4.6%

586

419

897

853

$1,488

$1.25

3.0%

4.2%

5

-

245

3,343

$1,313

$1.73

0.3%

2.1%

34

-

0

Westchester/Tamiami

TOTAL/AVERAGE 162,825

$1,489

$1.74

2.1%

4.7%

2,491

4,197

16,119

• In 2019, there were 123 apartment sales totaling $846 million with an average price of $179,987 per unit or $187 per square foot. • Sales volume was down by 14% from 2018 and 46% from the record high of 2017.

• For 11th year in a row, average asking and effective rents were at record levels. • In 2019, average asking rents grew by 2.1%. Class B and C properties are experiencing higher rent growth. • Highest rents are in Coral Gables and lowest in Homestead/South Dade.

• In 2019 vacancies increased to 4.7% from the record lows of 4.0% in 2018. Vacancies will likely increase in short-term with new supply. • Highest vacancy rate is in Coral Gables. Lowest vacancy rate is in Westchester.

• There are 16,119 units under construction. This represents 9.9% of the current inventory in the market. • In the past five years, 18,878 units were delivered to the market.

• In 2019 net absorption was 2,491 units. Newly completed units totaled 4,197 units resulting in marginal vacancy vacancies. • Vacancies in certain submarkets will increase in 2020 as new supply enters lease-up.

• In 2019 median salary income increased 5.8%. • The population grew by 130,061 in the past five years, and 1.0% 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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