The South Florida market will rank seventh among U.S. metro areas for apartment deliveries in 2018, according to RentCafe.
The apartment search website used data from its sister company, Yardi Matrix, to analyze new apartment construction of projects with at least 50 units in 136 metro areas. It found 9,790 apartments coming online in 2018 in the tri-county area. While that sounds like a lot, it’s actually down 13 percent compared to the prior year.
The population growth in South Florida from 2016 to 2017 was 0.9 percent, according to RentCafe. That is slower than in previous years as the region — especially Miami-Dade County — sees residents move to less expensive areas. The rising costs of construction and land have also made building apartments more difficult.
The top metros for apartment construction were New York City (19,948 units), Dallas (17,132 units), Denver (15,178 units), Los Angeles (11,449 units), Chicago (10,713 units), and Phoenix (10,302 units). After South Florida, the highest Florida metro on the list was Tampa with 4,176 units.
RentCafe expects about 283,000 new apartments to be delivered in major metro markets in 2018, a 11 percent decrease from the prior year, so the downward trend in South Florida is not unusual.
The city of Miami led the South Florida region with 2,940 expected apartment deliveries in 2018. That should come as no surprise to anyone who’s visited downtown recently and seen all the construction cranes. Yet, that’s a 14 percent decline from last year.
Fort Lauderdale was second with 952 expected apartment deliveries, a 45 percent drop. West Palm Beach has seen expected apartment deliveries soar 98 percent to 797 units.
Doral (750 units) and Hialeah (464 units) have also seen more apartment construction.
Original content SFBJ