The multifamily sector in South Florida expanded for the eighth consecutive year in 2017 fueled by strong demand from both investors and residents. That’s the conclusion of South Florida Multifamily Recap, a year-end report by Cushman & Wakefield. Year to date there has been 198 multifamily sales for a total of $3.6 billion, with Class A product involved in half of 2017’s multifamily sales. In the past two years, 85 percent of multifamily sales have exceeded $20 million per property, a marked increase from the historic average of 30 percent. According to the report, this has led to record transaction values.
The report also found that South Florida multifamily rental rates achieved record levels for the seventh consecutive year in 2017, rising more than 20 percent across all South Florida markets in the past five years. The report anticipates the need for nearly 57,000 new multifamily units in the next five years. Currently, there are only 18,518 units under construction.
