Why South Florida - 2Q 2023_Final

Surging Multifamily Dynamics

South Florida’s multifamily market has remained strong during 2022, despite the economic context. There has been nearly $1.0 billion in multifamily sales during the first half of 2023. Investors view South Florida multifamily real estate as a safe, more stable and strong asset class. In the first quarter of 2023, all three South Florida counties (Miami-Dade, Broward and Palm Beach) experienced record average per unit sales of $366,000, $302,000 and $349,000 respectively. At 6.8% Miami-Dade had the highest rent growth in 2022 of any major market in the U.S. Broward followed closely behind with 5.1% growth and Palm Beach experienced 1.7% growth. Effective rents are at record levels in all three counties.

Vacancies remain at historic lows in Miami-Dade: around 3%

SOUTH FLORIDA HISTORICAL TRANSACTION VOLUME VS. NUMBER OF TRANSACTIONS

WHO’S BUYING?

• Private capital continues to be extremely active. Many are first-time buyers in South Florida.

• Out of state private capital investors will continue to dominate the market.

• New foreign capital inflows slowed down over the summer. This may be due to the rise in interest rates coupled with increases in insurances costs per unit.

Cushman & Wakefield | Why South Florida