Apartment Rates Supply And Demand On Rise Countywide
Written by Marilyn Bowden on June 8, 2000
By Marilyn Bowden
Rental apartment rates, inventory and demand are on the rise in Miami-Dade, say market analysts.
The county’s inventory has grown by more than 2,000 units over the past several months, says the first quarter 2000 issue of Real Estate Market Profiles compiled by The Meyers Group. The profile tracks activity at 184 apartment communities with 54,664 units.
Five hundred units have been removed from county inventory, the profile says, largely due to condo conversion projects under way at three communities — Palm Court in Sweetwater and Club and Newport apartments in Miami Lakes.
Also, Meyers says, Miami’s Dominion Tower took 28 of its 157 units off the market for use by the University of Miami.
Since August 1999, the report shows, 1,384 units were completed in 15 communities while construction began on 1,464 units.
Miami-Dade’s rental occupancy rate is 97.3%, according to Meyers — up from 95.4% last August. Net absorption during that period was 2,284 units. The average rent countywide is $819 — a 6% increase from February 1999.
The highest rent increases, says Apartment Research Report, published by Marcus & Millichap, were in the Miami Beach and Coconut Grove submarkets.
"Demand for multi-family housing in South Florida will remain strong," Marcus & Millichap researchers predict, "with solid employment and population growth keeping vacancies relatively stable over the near term."
Rising interest rates are also creating a wider demand for rentals, the report says — but they may also discourage new construction starts as the cost of construction financing also rises.
Another factor — land for new construction is scarce — means rents will continue to escalate, Marcus & Millichap predicts.
In Florida Multi-Housing News, CB Richard Ellis market specialists Jay Massirman and Michael Stein say they anticipate increased development despite the recent rise in interest rates.
"With rates still at historically low levels," they conclude, "and a capital-abundant market, investors continue to have a large appetite for multi-housing product in Florida."
Miami-Dade is fast approaching full development capacity, the CB Richard Ellis report notes.
The Meyers Group lists seven projects on the drawing boards around the county that together would add about 1,400 units. Five of the communities would be income-restricted for qualified persons needing affordable housing.
nCoral Way Apartments, a 180-unit Renzi Development project in Miami.
nA 15- to 20-story, mixed-use development by the Trion Group, also in Miami.
nGolfside Villas, a 194-unit, 80% income-restricted community.
nWest Brickell, a Related Group of Florida project with 130 income-restricted units.
nEagles Landing and Crossing at University, two projects in the Opa-locka and Carol City submarket under development by Cornerstone Properties, with a total of 650 units, 60% income-restricted.
nDoral Terrace in Doral, a 256-unit, 70% income-restricted project by Cornerstone.
nViscaya Villas, Swezy Realty’s income-restricted property in Sweetwater.