A rendering of the planned 49-story, 646-unit X Biscayne tower developed by Property Markets Group at 400 Biscayne Blvd.

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Developers are doubling down on multifamily projects in Miami, the only major South Florida city to see a notable increase in new construction this year.

Nearly 7,000 new apartment units will be finished by year's end in Miami, more than double the 3,148 completed last year, according to a RentCafé analysis.

The Miami boom is balanced against a South Florida slowdown. About 13,030 units are expected to be delivered this year, down 3% from last year, the study found.

Multifamily real estate is one of the region's strongest property types, fueled in large part by job and population growth. Many residents also have been priced out of the home-buying market as the gap between income and housing prices grows.

Growth in apartment inventory in recent years started to outpace leasing activity across South Florida, prompting developers to hit the brakes on their projects, according to a Berkadia report published in July.

While the RentCafé analysis reflects fewer South Florida deliveries this year, the Berkadia study shows the construction slowdown started some time ago.

Developers built 8,555 units in the year from mid-2018 to mid-2019, a decrease from the 12,560 units that came online in the same period a year before, according to Berkadia.

Projects

Still, Miami has a mind of its own when it comes to multifamily high-rises.

One of the first major towers to be completed this year was downtown's 444-unit Caoba, part of the mixed-use Miami Worldcenter. The 27-acre project will include retail and the completed 700-foot Paramount condominium tower.

In the Wynwood Arts District, the 289-unit Wynwood 25 was recently completed, and the 175-unit Bradley apartment building will be finished by year's end.

At least four other apartment buildings are on tap starting next year in Wynwood, and downtown developer PMG is working on the 646-unit X Biscayne after finishing the 464-unit X Miami last year.

Another Miami Worldcenter apartment building, the 434-unit Luma, is set to rise down the line.

Other Cities

Other South Florida cities with multifamily construction this year are Fort Lauderdale, where 1,343 units are due, West Palm Beach at 695, Pompano Beach at 471 and Doral at 311, according to RentCafé.

South Florida is expecting 13,031 new units this year to place fourth nationally, trailing New York, Seattle and the Dallas-Fort Worth region, which leads the nation with nearly 22,200 units on tap.

The U.S. is experiencing a multifamily slowdown for the second year in a row after a 2017 peak. This year, just under 300,000 new units will be finished, 8.2% less than last year. The slowdown is attributed to high construction costs and a scarcity of skilled labor.

Developer PMG Joins Residential Wave in Miami's Wynwood Arts District

Instant Insights /

Miami Bumps Up to 7,000 New Multifamily Units This Year With South Florida Slowing

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