Submarket Spotlight | Q3 2022 | Miami


October 6, 2022

Boosted by above-average job growth, Miami has one of the country’s tightest rental markets. The metro’s northern area is among the hottest for investment, with Palm Beach County establishing itself as a thriving financial hub. According to the county’s Business Development Board, around 100 financial firms set up locations here over the past few years, including JPMorgan Chase and Goldman Sachs. Year-to-date, developers delivered a little more than 3,500 units and investors spent about $2 billion on multifamily assets across Miami. Investment activity is expected to slow down going forward, considering the rising interest rates and the uncertainty that comes with a high inflation climate. Additionally, increasing construction costs will likely limit development to some degree which, in return, will support rent growth. Yardi Matrix expects rates in Miami to grow by 9 percent this year—the largest hike in the country.