Miami-Dade apartment completions cause rising vacancies
New construction will drive up rental prices
November 10, 2015 03:45PM
A bird’s-eye view of North Beach, taken from the Akoya Condominiums in 2008 (Credit: Marc Averette)
Apartment vacancies in Miami-Dade County are up compared to last year, though rates are gradually falling in the short term, according to a third quarter report from Marcus & Millichap.
The report, which looked at county-wide apartment data from July to September, said vacancies held at 3 percent during the third quarter. That rate fell by a fraction of a percent from the second quarter, but is up 0.5 percent compared to the third quarter of 2014.
Marcus & Millichap attributed that increase to a boom in apartment construction: since the third quarter of 2014, more than 3,500 units have hit the market. The brokerage expects the upswing in construction to continue, as building permits for more than 7,700 apartments have been issued over the last 12 months.
As for pricing, rental rates continue growing at a steady pace: since the third quarter of last year, the average rental for an apartment in Miami-Dade grew by 6.3 percent to $1,311 per month. Newly built units will also help drive prices up, the brokerage said. Buildings constructed after 2000 saw a 4.5 increase in average prices year-over-year.
Though construction seems to be outpacing the market for now, Marcus & Millichap predicts that bustling job growth — 21,600 positions by the end of this year — will help fill the county’s gaps. — Sean Stewart-Muniz
Source: The Real Deal