WeaveReport South Florida Multifamily 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

DELIVERED UNITS

UNDER CONSTRUCTION

ASKING RENT PSF

ASKING RENT GROWTH

VACANCY NET ABSORPTION

SUBMARKET

UNITS

ASKING RENT

1,363

$915

$1.15

12.4%

4.3% 334

-

0

Belle Glade

11,951

$2,654

$2.56

32.0%

4.3% 1,079

662

1,369

Boca Raton

13,002 $2,175

$2.09

31.8%

4.8% 1,089

345

414

Boynton Beach

4,498 $2,650

$2.29

40.0%

2.8% 53

-

963

Delray Beach

5,424 $1,523

$1.65

18.3%

1.7% 199

56

2,029

Greenacres

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

78

$582

-

2.6%

-

-

-

0

7,684 $2,560

$2.32

38.1%

6.2% 496

616

20

6,739 $2,285

$2.11

33.1%

2.4% 137

-

0

13,894 $1,932

$2.01

24.6%

4.1% 1,216

658

4,147

West Palm Beach

TOTAL/AVERAGE 64,633 $2,291

$2.24

30.9%

4.1% 4,603

2,337

8,942

• For 2021, there were 97 apartment sales totaling $3.08 billion with an average price of $292,221 per unit or $263 per square foot. This is the highest sale activity ever recorded in Palm Beach.

• Average rents increased by 32.1% in 2021. • Average effective rents are at a record $2,280. • Delray Beach, Boca Raton and Palm Beach Gardens/Jupiter are submarkets with average rents over $2,500.

• In 2021, vacancies decreased from 7.9% to 4.1%. The lowest vacancy levels in over ten years. • Only Palm Beach Gardens have vacancies over 5%.

• There are 37 buildings totaling 8,942 units under construction. This represents 13.8% of the current inventory in the market. • 46% of the under construction units are in West Palm Beach submarket.

• For 2021 net absorption was 4,603 units. Newly completed units totaled 2,337 units resulting in the vacancy decrease. • West Palm Beach, Boca Raton and Boynton Beach had the highest net absorption.

• 3.5% unemployment rate. • In 2021 median salary income increased by 3.7%. • $432,433 median house price.

• In the past 10 years population in Palm Beach increased by 172,057 or 13.0%. • In the next 10 years, population is projected to increase by 175,703 in Palm Beach.

*Data as of Jan-2022, apartment sales of 10 units or more, in excess of $1MM in pricing, excluding all condo sales Source: CoStar

11