WeaveReport South Florida Multifamily

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

ASKING RENT PSF

ASKING RENT GROWTH

VACANCY

SUBMARKET

UNITS

1,511

$1,052

$1.32

12.3% 19.7%

-174

-

0

Belle Glade

12,660 $2,750

$2.61

0.0%

7.1%

398

581

620

Boca Raton

13,615

$2,193

$2.12

1.0%

5.9%

344

324

977

Boynton Beach

4,762

$2,628

$2.26

-0.8%

5.8%

86

212

910

Delray Beach

5,094

$1,705

$1.84

11.7%

3.0%

29

56

1,679

Greenacres

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

194

$580

-

1.9%

2.8%

-3

-

0

7,551

$2,611

$2.35

2.0%

7.5%

-160

20

396

7,214

$2,296

$2.12

0.1%

6.8%

111

402

191

14,794

$2,225

$2.28

3.8%

5.7%

-28

331

3,159

West Palm Beach

TOTAL/AVERAGE

67,395

$2,403

$2.32

1.7%

6.4%

603

1,926

7,932

• In 2022 there were 82 apartment sales totaling $1.65 billion with an average price of $385,215 per unit or $339 per square foot. • This was the second highest year ever for sales in Palm Beach.

• Effective rents increased by 1.4%. This is the lowest increase in South Florida. • Average effective rents are at a record $2,388. • Boca Raton has the highest average rent of $2,750. The lowest rent submarkets of Greenacres and Belle Glade had the highest rent growth over 10%.

• After decreasing to records lows in 2021, vacancies increased from 4.6% to 6.4% in 2022. • Belle Glade has the highest vacancy of 19.7% in Palm Beach. • Greenacres has the lowest vacancy of 3.0%.

• There are 32 buildings totaling 7,932 units under construction. This represents 11.8% of the current inventory in the market. • 3,159 of the under construction units are in Palm Beach.

• New deliveries outpaced net absorption by 1,323 units which resulted in the higher vacancies in 2022. • After 4,056 net absorbed units in 2021, net absorption in 2022 fell below the norm at only 603 units. • New deliveries are likely to outpace net absorption which may contribute to short-term higher vacancies in specific submarkets. • Boca Raton and Boynton Beach had the highest 2022 net absorption levels. Palm Beach Gardens/Jupiter was negative at 160 units.

12 MONTH POPULATION GROWTH

12 MONTH MEDIAN SALARY INCREASE

12-MONTH MEDIAN HOME GROWTH RATE

UNEMPLOYMENT RATE

MEDIAN INCOME

MEDIAN HOME VALUE

YEAR POPULATION

2022 2021

1,559,276 1,535,998

1.5% 1.3% 1.1%

2.60%

$72,151

3.1% 2.5% 3.7%

$563,356 $466,213 $385,899

20.8% 20.8%

4.34% $70,002

2020 1,516,105

8.29%

$68,282

9.6%

*Data as of Jan-2023, apartment sales of 10 units or more, in excess of $1MM in pricing, excluding all condo sales Source: CoStar, BLS

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