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Miami Is America's Top Growth City For Apartment Construction

Miami Is America’s Top Growth City For Apartment Construction

Miami’s apartment market is expected to grow faster than any other in the U.S., according to analysis by Real Capital Analytics and Costar.

The number apartments planned or under construction in the Miami metro is now 18,000 units. That works out to be 10.8 percent of existing inventory, higher than anywhere in America.

Many of those units will open soon. By the end of 2018 alone, Miami will see a record number of units come online.

Units in existing apartment buildings remain full, with vacancies below the national average.

Cap rates for existing buildings in Miami have remained stable over 18 months at 5.7 to 6 percent – well above the average of other gateway cities. Both income and prices have been steadily rising.

 

Midtown 6 apartment tower under construction in June 2018:

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Anonymous
Anonymous

Can we get some apartment projects in the $1000 a month range for a one bedroom? Especially when we have many jobs here paying just $10 – $12 an hour.

Anonymous
Anonymous

They’re plenty but you expect to live in brickell or midtown at $1,000. I pay $1,000 and i’m still close to everything.

Anonymous
Anonymous

Um, the Miami metro area is more than just Brickell or Midtown.

Anonymous
Anonymous

That is what i’m saying.

Anonymous
Anonymous

Dude, they’re building and proposing new apartment projects in Little Havana with one bedrooms costing more that $1000 a month.. so wtf are you talking about?

Anonymous
Anonymous

I meant, “costing more than”

Anonymous
Anonymous

And they’re one bedrooms under $1,000 and you clearly said new so how about you watch your language and stop expecting the government to subside everything and fine these $1,000 apartments like I did.

Anonymous
Anonymous

Yep, I can tell you’re a republican.. who said anything about wanting the government to subsidize new apartment buildings?

Anonymous
Anonymous

Buddy, if your skillset only commands $10 per hour, a brand new apartment isn’t for you. Rent a used apartment until you can get either skills or experience to command $15 per hour. Save 10% of every paycheck, and dont go into debt.
Soon, you can buy a used car.
Work on your skillset and get experience and you will earn $20 per hour.
At $20 per hour 40 hours per week for 50 weeks and using 33% of your income for housing, you should afford $1,000 per month.

Until then, get a roommate or two or three, and stop whining.

Anonymous
Anonymous

Um yeah, explain everything you said to the people that come on this site and whine about new condo projects in Miami that the average citizen cannot afford.

Anonymous
Anonymous

I thought that I was explaining it.
Condo projects that AVERAGE people can’t afford are not in AVERAGE areas, and are not built for AVERAGE buyers, they do not have AVERAGE amenities etc.
Not many successful real estate websites get clicks reporting about AVERAGE architects in AVERAGE buildings for AVERAGE joes or citizens.

anony
anony

Best way to view new non-beachside condo projects is foreign nationals buying discrete rentals with their safe haven money. Locals are benefiting from this activity in four ways – addition to the rental supply pool which moderates rent growth, investment in the community and surrounding infrastructure that generates jobs, property taxes and improved neighborhoods, the creation of a relatively new stock of housing that is more sustainable than the existing stock, and may be attractively priced as it ages. Cheers

Anonymous
Anonymous

With that mindset the minimum wage should be $20 an hour. If everyone “worked on their skill sets” to make $20 an hour, who would serve your coffee, check you out at retail stores, teach in schools and etc. The fact is their are a lot more residents that make less than $20 an hour and we should be build housing to accommodate them as well. Yes you can find apartments for under $1000 a month but they are rare and mostly slums.

Anonymous
Anonymous

“who would serve your coffee, check you out at retail stores, teach in schools and etc. ”

recent immigrants and kids….and most teachers make far more than under $20/hr LOL

anony
anony

coffee servers need to live somewhere Joe, and hopefully better than a slum. Cheers

Anonymous
Anonymous

MILLENIUNS DONT UNDERSTAND AND DONT WANT TO PRACTICE YOUR ADVICE!!! T🤓🤓

anony
anony

$20/hour @ 33% is $1,144/month. I’m not sure how well these traditional ratios still apply given the high level of debt our newly minted graduates come with these days, and assuming you get health care. Maybe only one case of beer a week? Cheers

Anonymousg
Anonymousg

Yes, but don’t expect them with ocean front views.

Anonymous
Anonymous

Shsshhh, where do you people come from. I’m talking about realistic affordable apartments for the average Joe in Miami and you think people are thinking and begging for ocean views? Get real.

Anonymous
Anonymous

Yeah so get real and be willing to live in areas that aren’t brickell, downtown or midtown.

Anonymous
Anonymous

I’m talking about being able to afford rent in a new apartment building in Miami for one person and your mind is still stuck on Brickell and Midtown. You are what one would call a “bubble head.”

Anonymous
Anonymous

If its that cheap it won’t be new. Can’t build at those rents.

Anonymous
Anonymous

And you tried to and that’s you know?

Anonymous
Anonymous

He doesn’t have too. Developers have been complaining to the city for years that they can’t build anything new under a certain $ per sqft with all the codes and regulations. This is old news. And it’s why they are only building lux stuff.

For under $1000 you’re going to have to settle for old, small, bad hood or long commute. Probably at least 2 of those 4 so pick which poison you can stand the most.

There’s no one here who can help you find that magic unicorn apartment.

Anonymous
Anonymous

People are paying $1200 in Kendall and $1400 in Doral for a one bedroom, so no this isn’t just “Brickell or Midtown.”

Anonymous
Anonymous

Rentals in new construction buildings in Doral, such as City Place or Downtown Doral are $1,600+!

Anonymous
Anonymous

Thanks guys. I don’t why some people think that new apartment buildings in Midtown or Brickell are the only places that’s charging $1200 and over a month for a one bedroom.

Anonymous
Anonymous

I just sold a 20 unit apt building in Ft. Lauderdale ON THE WATER, rents were $900 to $1,100 for the one bedrooms. With pool and parking.

Anonymous
Anonymous

It will soon be torn down for a luxury project.

anony
anony

probably doesn’t have the zoning in Ft. Lauderdale

anony
anony

new one bedrooms in Brickell and midtown are typically $1,800 and up, if not a micro unit. Cheers

Anonymous
Anonymous

It doesn’t pencil out. Construction costs are through the ceiling and land costs are even worse. When you have people trying to sell a single lot in the middle of Little Havana for 300k+, no developer can afford to build units that rent at under $1,000 per month, let alone $1,500 per month. It’s not Brickell or Wynwood, it’s a mediocre neighborhood consisting of mostly T4 where you don’t have to build parking via the exemption and the numbers still don’t work.

Anonymous
Anonymous

And you know this because you’re a developer?

anony
anony

I am, he’s right. It’s simple math. there’s no mystery to it, except that even if the land were much cheaper it wouldn’t make too much difference. What impacts the cost more than you’d expect are parking requirements. Impact fees paid to the county are also a big cost – $10,000/door. In the case of rentals, high property taxes impact returns. Most aren’t aware but Dade County, and Miami in particular has some of the highest property taxes in the state. Twice as high as Collier county, for example. Cheers

Anonymous
Anonymous

Well since you’re a developer, can you tell us some of the projects you’ve built and your name?

Anonymous
Anonymous

Little Havana isn’t as average as you think. Sure maybe in terms of LOOKS. But the 3 L’s of real estate aren’t ‘looks’ they’re ‘location’. The 3 main job centers in Dade are Doral, Miracle Mile, and Downtown Miami. LH is very close to 2 of them and away from direction of rush hour traffic to get to the third.

All these newer trendy hipsters moving into LH may LOOK like they’re lost and out of place. But they know what they’re doing when buying. Sounds like they’ve already had to commute to their job from Ken-dull at least once in their life before. 😉

Anonymous
Anonymous

1000 will get you a mediocre studio.

Anonymous
Anonymous

Yep….

Anonymous
Anonymous

if you’re making 10-12 an hour and looking at the urban core for housing, you’re in severe need of a reality check.

Anonymous
Anonymous

Yeah, you might as well go live in your car or under a bridge somewhere if you’re only making that much.

Anonymous
Anonymous

Most jobs in the urban core pay that much, so why is it crazy for them to want to live close to work. especially if they don’t own a car. This is why they should require all new projects to include a percentage of units for workforce/affordable housing.

anony
anony

Just like in the People’s Republic of San Francisco. As if the government mandates buried in Miami 21 and the direct payments to the county in the form of “impact fees” aren’t already costly enough! its unbelievable how people don’t understand the public contributions a developer makes to even move a spadeful of dirt. I’d argue that new development is already paying its fair share with its direct contributions and additions to the property tax rolls at the very high Dade county property tax rate. Remember that next time you take that free ride (i.e. subsidized) on the trolley or the metro mover. Cheers

Polo
Polo

Yes, if you want to live in Hialeah.

Anonymous
Anonymous

Remember when your parents told you to study and get good grades so that you could get into a good college and later on have a good career? Welcome to adulthood, life has consequences.

Anonymous
Anonymous

Tell that to the students who’s average college debt is around 75 to 120 thousand dollars and above after finishing college.

Anonymous
Anonymous

If you decided to study philosophy at a private liberal arts colleges, then you deserve the consequences of your decision. All my friends who studied Finance, engineering, medicine, etc, and who have gone to schools like UF have had no problem with student debt. Again, welcome to adulthood, life has consequences.

Anonymous
Anonymous

Um yeah, all your friends make up the entirety of people who went to college.

I bet you have way of explaining any and every thing very easily.

Anonymous
Anonymous

So now everyone has the choice to go to schools like UF to study Finance, engineering, medicine, etc. Get over yourself I know many people who went to UF and studied all of those things and cant afford to live in any of the new projects being built. maybe in 10-15 years they will if they’re lucky. Good grades don’t always equal big checks.

Anonymous
Anonymous

So true, and as Trump always said, the system is rigged, it really, really is, and it still is.

Anonymous
Anonymous

Trump’s daughter doesn’t have to worry about student loan debt at Georgetown… the problem is now we have a society where if you play by the rules and take debt to learn a trade, and w/o connections, family money, you are screwed, and won’t be able to afford an apartment in downtown miami.

anony
anony

I hear you ‘bro. Unfortunately nothing “new” can be delivered to the market for $1,000/month simply due to the cost of new construction, unless it is the size of a shoe box. At that income level used rentals are your best bet, and there are plenty around, though probably not near the water or within easy reach of 95. There are exceptions of course in some gritty neighborhoods (your squeeze won’t be walking the dog at night). That’s been the American way for a long time – strive to make more money, and immediately blow it on better housing. Would be nice to break the cycle.

Anonymous
Anonymous

The CoStar analyst calling the market in Miami is a joke and is consistently wrong. I wonder if they ever leave their Atlanta office to see the market.

Anonymous
Anonymous

You’re right, I wonder if they even took a look at the Seattle metro apartment market.

Anonymous
Anonymous

True. But the sad part is they have a satellite office in Brickell…a very nice and big one.

Anonymous
Anonymous

When you consider how well established an developed other cities are their apartments have been in place for years! Development in Miami is still growing and still has open lots everywhere while other cities don’t have room to build so they’re building out.so I can see this article being true an we still have a long way to go in comparison.

Anonymous
Anonymous

Great news, 305 till I die

Anonymous
Anonymous

Now if Miami could attract jobs outside the construction industry the city woiuld have a real future

Gringo
Gringo

1 bedroom units in BRICKELL, property Taxe are $900 a month and HOA fee $750 so without any type of mortgage it’s cost $1650 just to own, so much for $1000 a month availability…

Anonymous
Anonymous

Wow, Gringo is smart.. he knows how to compare paying for a Condo in Brickell to paying rent anywhere else in Miami. Don’t let anyone tell you you’re not a genius Gringo.

Anonymous
Anonymous

I think he’s just saying a unit owner can’t afford to rent his/her unit for less than $1,650 w/o incurring a loss, not factoring in mortgage, if any.

Anonymous
Anonymous

Did he say that his Condo association allows tenants to rent out their units?

anon
anon

most do.

Anonymous
Anonymous

Oldest principle in RE. Supply and demand. Vacancies price drops, Occupancy rent increases.

anon
anon

precisely, on an overall basis. On the other hand, I suspect there is some migration taking place between markets as renters are choosing to live closer to employment centers, have easier reverse commutes, and empty nesters. Next recession might be telling though.

Anonymous
Anonymous

S

Anonymous
Anonymous

H

anon
anon

Interesting rosy forecast. I wonder how they account for the shadow rental supply from all the new condos being delivered?

Anonymous
Anonymous

Hope Walmart sells their lot to Melo for Midtown could have more development

Anonymous
Anonymous

Build a gym! Planet fitness hopefully so it’s near by abs cheap

Anonymous
Anonymous

They’re plenty of gyms in the area.

Anonymous
Anonymous

Only $150-$250 per month gyms for that area.

Anonymous
Anonymous

I hope they sell to anybody.

Anonymous
Anonymous

I hope they stop selling to Melo so he can stop ruining our skyline.