Last year, multifamily deliveries in West Palm Beach, Florida, eased — but rather than the momentum continuing, the trend is expected to reverse in 2026, according to a second-quarter market report from Marcus & Millichap.
While the slowdown of supply has helped tighten vacancy in the first half, completions are expected to pick up in the second half, with annual deliveries estimated to be 80 percent higher this year compared with 2025.
"Over 60 percent of units will open in Downtown West Palm Beach," Marcus & Millichap said.
"Here, vacancy fell by a metro-leading 100 basis points over the year ended March to 4.8 percent, leaving the area better positioned to absorb new supply."
Overall, that's expected to push overall market vacancy up by 30 basis points to reach 5.1 percent. On the bright side, that rate is just 10 basis points above the past decade average in the market.
For vacancy, West Palm Beach multifamily has been in a flight to quality, with Class A's tumbling by 200 basis points over the past year, while Class C properties have seen a spike by more than a percentage point. Also, Class A vacancy (3.3 percent) in West Palm Beach is among the lowest in major national markets, according to Marcus & Millichap.
In addition, the incoming supply is expected to put pressure on rent growth, with Marcus & Millichap forecasting just a 2.2 percent acceleration to $2,580 on average. This would mark the fourth straight year of just "modest" rent growth in the city, according to the CRE brokerage.
Along with elevated deliveries, construction is set to jump by 1.8 percent to 2,400 units.
For investment activity, Palm Beach County has been a magnet, with sales in the 12 months through March surging by almost 60 percent.
"Downtown West Palm Beach may remain a core target for private investors, as Class C vacancy was at a metro-low 3.5 percent in March despite recent softness," Marcus & Millichap hinted in its report.
Also, investors may continue to flock to high-barrier-to-entry submarkets to avoid the elevated construction.
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