Report: South Florida will add 16K apartments to its inventory this year
South Florida will have approximately 16,000 apartments delivered in 2020, helping rents to even up in markets with added supply, according to Berkadia’s annual report and 2020 forecast. The amount of units is fueled by population growth in the grand majority.
The number of apartments with scheduled deliveries will be almost double than the 8,871 units completed last year, marking the most significant amount of annual deliveries so far this cycle.
In total, developers are awaited to deliver approximately 280,000 units across the United States, similar to last year, and maintaining the 260,000-plus annual deliveries pace set and kept since 2016. New developments and permits, which are indications of future supply, are assumed to drop during the year, according to a CBRE outlook report.
Society Las Olas, formerly called Property Markets Group’s X Las Olas, will be the area’s largest completion with 639-units in its first phase. The project is located in Fort Lauderdale. Gio Midtown, in Midtown Miami, will add 447-units to the neighborhood.
In 2019, rents in South Florida rose 1.4 percent, going to $1,642 a month, according to Berkadia, while occupancy rose to nearly 96 percent, up 60 basis points, year-over-year. Now in 2020, we should see a growth of 2.1 percent in the rent, up to $1,677, Berkadia said.