Miami-Dade County ranks first in the nation for multifamily units under construction, driven by strong job growth and steady migration.
Key Construction Highlights (2024 Q3):
- Miami-Dade: Approximately 25,000 units in buildings with 50+ units are being built, adding 19% to current inventory. This supply could meet three years of current absorption rates.
- Fort Lauderdale: Nearly 10,000 units under construction, equivalent to two years of absorption.
- Palm Beach County: About 2,000 units, adding 3% to inventory and covering one year of absorption.
- Total for the Region: 37,000 units under construction across Miami-Dade, Fort Lauderdale, and Palm Beach.
While construction continues, the pace of new permits has slowed. Through August 2024, around 12,200 units were authorized in the region, a drop from 2023’s 15,363 units and 2021’s peak of 16,549. Rising mortgage rates and high construction levels are influencing developer decisions.
Miami-Dade's Rental Market Outperforms Florida and National Averages
Despite significant construction activity, Miami-Dade’s multifamily vacancy rate remains lower than the national average.
2024 Q3 Vacancy Rates:
- Miami-Dade: 6.7% (vs. 8.7% nationally).
- Higher vacancy rates in Palm Beach (10.8%), Orlando (10.4%), Tampa (10.4%), and Jacksonville (13.9%).
Rent Growth:
- Miami-Dade’s median rent rose 4% annually, double the national increase of 2%.
- Slower rent growth in Palm Beach (1.7%), Broward (1.8%), and other Florida markets like Orlando and Tampa (0%). Jacksonville saw a slight decline (-0.6%).
Migration and Job Growth Powering Miami-Dade’s Market
Job growth and migration continue to fuel demand in Miami-Dade’s rental market.
Migration Trends (2024 Q1-Q3):
- Miami-Dade saw a 2% increase in out-of-state driver license exchanges (16,474), while neighboring counties like Broward (-13%) and Palm Beach (-10%) saw declines.
Job Growth (2024 Q1):
- Miami-Dade (+2.5%) outpaces national and Florida averages.
- Only Lee County (+3%) recorded stronger growth among large Florida counties.
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