New Miami Apartment Buildings Are Filling Up As Fast As Elevators Will Allow

Developers can’t keep up with demand for new apartments in Miami, according to a new report by Berkadia.

Demand for rental apartments in the area is so strong that the only limitation to how fast the new apartment buildings in Miami are filled is elevator capacity for tenant move-ins, the report said.

Absorption is far exceeding all of the new supply coming to market, the report added.

High demand has caused both rents and occupancy levels rise significantly in the last quarter.

In the second quarter of 2021 alone, net absorption of apartments in the Miami area surged to 10,028 apartment units even though just 4,855 new apartments were delivered in the same period.

The high level of demand caused rents to ‘vault’ in Q2 by 5.3% compared to the first quarter. Occupancy also surged quarter over quarter by 80 basis points.

Overall, the Downtown Miami/South Beach and Fort Lauderdale submarkets outpaced the metro area as a whole during the quarter.

Charles J. Foschini, senior managing director for Berkadia in Miami, told Globest.com and the SFBJ that sometimes the only limitation on how fast new buildings can be filled is elevator capacity. Move-ins create high demand for elevators, limiting the speed on which leases can be signed, he said.

Developers are preparing to break ground on another 17,300 apartment units in the next four quarters.

The Downtown Miami/South Beach submarket has seen particularly strong demand, and developers will focus on that area.

More than one third of new inventory planned to break ground in the next year is in the coastal Downtown Miami/South Beach, North Central Miami, and Coral Gables/South Miami submarkets.

More than one-quarter of the new apartment stock in the metro area delivered in the first half of 2021 alone was in the Downtown Miami/South Beach and Coral Gables/South Miami submarket as developers respond to “healthy” demand in those areas.

 

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Anonymous
1 month ago

Anyone hating on Melo needs to realize the immense hole they have filled and continue to fill. Melo understood the need from day one and has executed time and time again…

Anonymous
1 month ago

Forget it.. these experts who come on this site using that very astute word, “ugly,” when bashing the Melo Group and other developers projects are, you know, always right and I don’t understand why people aren’t listening to them?

lol…

Anonymous
1 month ago

… that’s sarcasm people so you can stop with the thumb down votes.

Azarius
1 month ago

Wynwood is going to help as well due to most of the projects there have short build times with a lot of apartments coming to the market. Much sooner than Buildings coming up in MWC, which is understood due to size difference’s and engineering.

Anonymous
1 month ago

No thanks to Mana

Anonymous
1 month ago

Its insane with rent increases. I lived in Axis in a decent unit. Owner only redid the closets and put in new floors. Was paying $2500 and they increased the price to $3500. If youre thinking of buying rental properties now looks decent because rents will continue to rise

Anonymous
1 month ago

How much higher can they go? Your example is pure madness…

Azarius
1 month ago

No cap… my unit went from 1500 to 1900 no upgrades

Anonymous
1 month ago

There’s always a cap somewhere… the most dangerous words are ” it’s different this time” it’s just very difficult to time

Anonymous
1 month ago

No caps means no lie lol

Anonymous
1 month ago

They will come back down soon. People’s pay isnt going up that quickly.

Anonymous
1 month ago

Is this facing the metrorail station as well ?

Anonymous
1 month ago

i lived in the south building that overlooked metro rail

Marc
1 month ago

I’m actually thrilled my bldg’s pool deck is closed. Hard to raise rents when the building is a giant construction site.

Anonymous
1 month ago

Surrounded by free beaches

Anonymous
1 month ago

My rent went from 2550 to 3200. Landlord said he gave me a deal as he feels he could have easily got 3700.

S.k
1 month ago

Live in Brickell as well, and since 2H2020 we’ve seen a spike in demand from NY/CA people who easily pay $3K for an 800sqft apt. Not sure if these people will eventually leave Miami when their companies open offices back in NY/CA and rents in Miami would go down as demand paying NY/CA’s prices is gone.

Anonymous
1 month ago

Miami is here to stay at this point. The pandemic forever changed this city. The exposure i insane

Anonymous
1 month ago

Keep building (especially around transit stops) and don’t let the NIMBYs get in the way!

Anonymous
1 month ago

Lol. If you want affordable housing move to North Florida.

Anonymous
1 month ago

Everything is affordable if you can afford it.

Anonymous
1 month ago

But then you’d be in North Florida.

Azarius
1 month ago

Melo developments for the last 4 years has been right on time for the market change. Residential is cash cow right now in Miami. Which will eventually lead to the office boom we so desperately want. We need more affordable projects to off set all the luxury projects. More density!

Anonymous
1 month ago

Thanks to Melo inparticular for adding much needed inventory, hope they keep building more buildings.

Anonymous
1 month ago

And just think, there are plenty more derelict and empty lots north of downtown to build apartment towers on.

Anonymous
1 month ago

I like the look of those two towers in the picture near Brightline’s Miami Central Station.

Anonymous
1 month ago

Parkline.. awesome buildings.. loving it here

Anonymous
1 month ago

When you talk about the Metro area, what are you referring to?
Miami Dade/Broward/Palm Beach metro area or the Miami Dade Metro Area?
Writers, please it only takes one more sentence to clarify and detail your comments

Anonymous
1 month ago

Miami metro area is defined as Dade, Broward, and Palm Beach County.

Anonymous
1 month ago

No.. those counties are referred to as the South Florida area. Until Broward and Palm Beach counties agree to joining and forming the three counties as the “Miami Metro” area, then it’s still just MiamiDade.

Anonymous
1 month ago

Metro Area (Metropolitan Statistical Area, or MSA) is a Census term/geography. The Miami Metro Area is in fact Miami-Dade, Broward, and Palm Beach Counties.

Anonymous
1 month ago

Wrong.

Anonymous
1 month ago

No.. Cities in the Miami metropolitan area include Miami itself, Homestead, Hialeah and Miami Beach.

Anonymous
1 month ago

The census defines this term not you. The Miami Metro area is all three counties. Just say Miami-Dade county if you want to be that specific

NYC Loves Miami
1 month ago

Well, here in NYC the metro is considered to be NYC, New Jersey and Connecticut.

Anonymous
1 month ago

The Miami metro area doesn’t exist outside of Dade County, according to some posters on this site.

Anonymous
1 month ago

According the the US Census Bureau, the Miami Metropolitan area does include all of Miami-Dade, all of Broward and all of Palm Beach counties. The confusion and the argument here is based on the fact that the Miami SMSA (Standard Metropolitan Statistical Area) used to be Miami-Dade county alone and Broward and Palm Beach counties were considered to be separate SMSAs as well. That changed a little over ten years ago when the census bureau combined all three counties into the “Miami Metropolitan Area.” It is very easy to verify this at countless websites including wikipedia and the US Census bureau.

Anonymous
1 month ago

^ Thanks for the explanation, I wasn’t aware that the census bureau combined the three counties into one metro area over ten years ago or that they have the power to do so. I was still going by the point that Metro Miami is it’s own entity. I guess you somewhat fall behind small news like that when you move clean out of the state over thirty years ago like I did.

Anonymous
1 month ago

Yeah at this point it’s hard to notice when you even cross county lines. Everything is so developed down here

Anonymous
1 month ago

Every single one of my friends is getting their rents increased by 25% + in Brickell.

SLS LUX 3BR: $4500 to $6000
Millicento 1BR: $2100 to $2800
Axis 2BR: $2500 to $3500

The next available 2BR in Camden Brickell is $3,789!

So excited for this city

Anonymous
1 month ago

NYC, MA, CT, NJ, CA residents love MIami they think it some foreign tropical paradise.

Anonymous
1 month ago

Really amazing. Took a black swan event to fill all the inventory. Who would have guessed? And the Mayor too.

Anonymous
1 month ago

developers, the demand is here and it will be here, please, build something that will grace our skyline.
NO MORE BOXES.

Anonymous
1 month ago

All of this development should be concentrated in downtown and around the metro stops, don’t know why we still have parking lots around some of them

Anonymous
1 month ago

Because people still buy cars and other vehicles.

Anonymous
1 month ago

What a hunk of sh*t.

Anonymous
1 month ago

What, are you talking about your car you just got out of?

78brickell
1 month ago

how you all liking that guy named Biden…

safa
1 month ago

from what i am hearing even hardcore blues are missing Trump already.

Anonymous
1 month ago

Lol.. tell that to Liz Cheney, she wish she could ship Trump’s ass out to some remote deserted island in the South Pacific Ocean.

Anonymous
1 month ago

absolutely no one who identifies as “blue” is missing Trump, I can assure you of that

Anonymous
1 month ago

typical Trumpian language…”I’ve been hearing lots of people [insert completely baseless claim]”…doesn’t matter if its true or not, just a way to appeal to complete idiots

Anonymous
1 month ago

^ Send my storm troopers to his house.

– The Fuhrer, Trump

Don't move to Broward please
1 month ago

Keep all that shit in Miami..the traffic, the prices, …Keep Broward truly residential …as a Broward resident by birth, we pay enough for living already.. keep all the tourist trap prices where the tourists love to be. Metro area my ass 😂.

Anonymous
1 month ago

Okay man, your wish is our command. You know Florida exist only to please just Broward County…

Anonymous
1 month ago

I hate to inform you that the average price of housing in Broward is only a few dollars away from Miami-Dade. Time to move to Tennessee if that’s too much for you

Andre Brown
12 days ago

City Hollywood are building apartments an condo come to Hollywood Beach Downtown good food GreaT people .

Anonymous
1 month ago

I don’t understand how Miami have such high demand for this type of apartments/condos. The city has no high paying jobs to afford that lifestyle.

Anonymous
1 month ago

Thank remote work for this recent boom, but Miami is a dynamic market with lots of international and tourist buyers.

MBBill
1 month ago

I agree completely with the remote work comment. SoFl just better hope no one returns to the office anytime soon… [And international folks don’t rent apartments so much, though. Their return will certainly help fill some of the void in the condo market being left by all the New Yorkers who will ultimately go back to New York.]

NYC Loves Miami
1 month ago

I agree. Before the Cuomo sex scandal broke the news, he was trying to get businesses to force their employees to come back to NY.

Anonymous
1 month ago

Are you talking about the high asking prices or the high demand for apartments/condos?

Those are two different things.

Anonymous
1 month ago

Ummmmm…..there is a very strong correlation between supply/demand and pricing.

Anonymous
1 month ago

Either the City doesnt have high enough paying jobs to afford these rents,

OR

You are dead wrong about your assessment about jobs.

Anonymous
1 month ago

You need to understand that we are a city where most of us don’t make more than 11$/h. Miami is just looks. On pictures it gives the impression that it is a glamorous city but in reality most Miamians are poor, corrupt and in many cases lazy. I think the first comment is more assertive. These condos and apartments are driven by foreign investors or people that just spend 99% of their income on rent or 3-4 persons live in the same unit.

Anonymous
1 month ago

I thought McDonald’s is paying 15 dollars an hour for you to ignore customers waiting at the counter and because the kiosks have been shut down over the past year.

Anonymous
1 month ago

The median income in Miami is $22K/yr. Skyrocketing rental prices is mainly due to remote workers from NY who have taken up all the inventory.

Anonymous
1 month ago

So.. just build more apartments buildings and build them taller. The days of the little two story apartment building is over.

POLO
1 month ago

Please, DO NOT approve those ugly “super-towers” near Brightline station!

Anonymous
1 month ago

what is the other great project that should replace the supertall towers and have this project rejected ? where are the renderings ?

Anonymous
1 month ago

Polo would rather see a homeless tent city there.

Anonymous
1 month ago

One supertall tower with first-rate architecture. At one point, it was proposed the new county courthouse could be part of it, which could have looked cool as a high-tech interpretation of the 1926 tower.

NYC Loves Miami
1 month ago

I understand where Polo is coming from. I wouldn’t say they’re ugly, maybe a bit boring. Hopefully downtown Miami gets some truly iconic sky scrapers. If downtown can at least get five of those, I think the end result will look fabulous!

Anonymous
1 month ago

It doesn’t matter the architectural splendor of the building if you can’t afford to live there.

Anonymous
1 month ago

If you want affordable housing move to a cheaper area. If you can’t figure out how to make enough $$ to live in a gentrifying area you don’t deserve to live there.

Anonymous
1 month ago

^ Look MF, I don’t need to read any useless comments from a clueless clown like you.