MIAMI—In case you wondered just how hot Miamimultifamily really is, take a cue fromRelated Development. The firm is tapping into whatit sees a renewed rental demand following historic lows inmultifamily development.

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Tapping may not be a strong enough word. Related broke ground onfour new multifamily properties with 1,129collective units from Miami-Dade to Palm Beach County in Septemberalone.

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According to Steve Patterson, president ofRelated Development, low single-family home ownership rates, whichthe US Census reports have declined to the lowest level since 1995at 64.8%, is a contributing factor. Patterson also points to theimpact of a job market flooded with young workers that can't affordhome ownership.

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"Related's continued growth and sizable development pipeline inSouth Florida is driven by our belief in real demand," he says. "Inspite of a significant increase in apartmentcompletions during the last two years, occupancies have held firmand rents are growing above the historic norm."

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Related's SOFA-Delray, Town-Pembroke Pines, Doral View II, andTown-University Drive launched construction in September. All told,Related has over 4,700 multifamily units in itsdevelopment pipeline scheduled for completion and/or groundbreakingduring the next year targeting professionals who used to buyhomes.

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All of this isn't just Related being bullish on South Florida'smultifamily market. Axiometrics has labeled 2014as the strongest year for multifamily since themarket began to recover. Even then, 2014 multifamily developmentwill barely reach pre-recession numbers.

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"The market of Millennials leaving their parent's homes andstarting their own households is growing rapidly, so there willdefinitely be more renters next year and the year after thantoday,” says Patterson. “We intend to be ready with new luxuryrental product for them to call home.”

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