Apartment rents expected to keep rising despite new deliveries

According to an article by Katherine Kallergis from August 30, 2017, published on therealdeal.com nearly 16,000 apartments are slated to come online in South Florida this year, but rents are still expected to keep rising, according to a new report.

View of Brickell Key (Credit: Gabriel Kaplan)

Apartment rents rose annually in Miami, Fort Lauderdale, and West Palm Beach in June, according to Marcus & Millichap’s multifamily report. In Miami-Dade, rents were up 8.8 percent in the second quarter, year-over-year, to nearly $1,450 a month. In Palm Beach County, rents increased 3.5 percent to just over $1,500. And in Broward’s major cities, rents budged by only 0.6 percent to $1,474.

Vacancy rates, which have been rising in all three metros, are expected to keep increasing as new projects get delivered. The report looked at growing employment rates, rising home prices and the affordability gap between rents and mortgage payments. Earlier this year, Berkadia predicted rents would begin to level off in South Florida, citing an increase in rent concessions and rent drops in some major markets.

In all three counties, the Marcus & Millichap report found that renting was cheaper than the average monthly mortgage payment.

You can read the entire article here: https://therealdeal.com/miami/2017/08/30/apartment-rents-expected-to-keep-rising-despite-new-deliveries/

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