Miami has regained its top spot among South Florida apartment markets in terms of occupancy performance, marking a strong recovery from a pandemic-era decline.
Between 2015 and 2019, Miami averaged an occupancy rate of 96.1%, surpassing Fort Lauderdale at 95.1% and West Palm Beach at 94.4%, according to a RealPage analysis. When COVID-19 first hit in 2020, occupancy declined in all South Florida markets, but Miami and West Palm Beach suffered more significantly than Fort Lauderdale. As the country began to recover from the pandemic, Miami struggled more than the other two markets, with occupancy rates climbing more slowly during the early months of 2021, according to the analysis.
However, the city's recovery had accelerated by mid-2021, reaching 98% by mid-year and maintaining that mark for eight months, according to RealPage. As occupancy has leveled off in the years since, Miami has lost less ground than the other two South Florida markets, now returning to its spot as the region’s occupancy leader.
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Demand has consistently exceeded supply volumes in Miami over the past few years, resulting in an occupancy rate of 95.9% in May and making it the only South Florida market with an occupancy rate higher than the national average. For the year ending in the first quarter, Miami absorbed more than 12,500 units, surpassing supply volumes by more than 1,200 units, according to the analysis.
Fort Lauderdale and West Palm Beach each reported an occupancy rate of 95.5% in May. In Fort Lauderdale, the difference between supply and demand was relatively small, with demand of approximately 6,400 units exceeding supply by about 800 units. In West Palm Beach, the supply of 3,610 units exceeded demand by 30 units.
Demand in Miami has been driven by one of the nation’s biggest recent population increases. The resident base in The Magic City grew by nearly 325,000 people between 2020 and 2024, according to Census Bureau data. The total population is more than 2.8 million, while Fort Lauderdale has a population of nearly 2.1 million residents, with growth over the past five years of about 94,000. During that time, West Palm Beach experienced a population growth of approximately 88,000, reaching a total of 1.6 million residents.
Miami is the only South Florida market that continues to log rent growth, with prices increasing 1.2% for the year ending in May. Rents fell 1.1% in Fort Lauderdale and 1.7% in West Palm Beach. All three markets are among the priciest apartment markets in the nation, with monthly rent averaging $2,678 in Miami. Average rent in West Palm Beach is $2,497 and in Fort Lauderdale is $2,491, according to RealPage.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
