South Florida Multifamily Rent Growth for 2018: Highest Average Rent; Top Five Fastest Rent Growth; Five Slowest Rent Growth
RentCafe just published its year end rent report. The top line for area multifamily investors again got a boost. In Miami, apartments now cost $1,684 per month, a 4.5% increase from the prior year. By comparison, average rent grew 3.1% nationally.
Within the South Florida area, Doral registered as the city with the highest average rent at $2,156 per month, followed by Miami Beach and Boca Raton. Note that some higher rent districts locals might expect to find in the top spots instead of these are less high when averages are considered for a larger area these premium-areas-known-to-locals areas lie within.
The top area cities boasting the highest rent growth are Coconut Creek with 8.0% (increase in average rent), Davie with 5.4%, Coral Springs with 5.0%, and West Palm Beach with 5.0%, and Miami Beach with 4.8%. Delray Beach, Miramar, and Doral saw some of the slowest rent growth rates of 1.9%, 2.1%, and 2.3%, respectively.
Aggressive increases in the price of apartments throughout 2018 resulted in three Florida cities in the top 10 U.S. mega-hubs with fastest rent growth rates, Jacksonville at number 4 with a 6.3% in rent increase year over year, followed by Orlando at number 5 and Tampa at number 6 with 6.1% and 5.4% year over year rent growth rates, respectively. This strong rent growth, when combined with stable low vacancy rates and compressing cap rates (charts for both below) make for heady times indeed for multifamily investors.
Miami-Dade County Multifamily Capitalization Rate (Cap Rate) 5-Year Chart as of January, 2019 Courtesy of Costar
Miami-Dade County Multifamily Vacancy Rate 5-Year Chart as of January, 2019 Courtesy of Costar