Broward County Market Overview
Broward County’s apartment rents were steadily inclining at a 9.8 percent annual rate during the third quarter of 2022 and have posted an average yearly gain of 8.9 percent over the last three years. The county is in the middle of 12,000 units currently underway, representing the largest under-construction pipeline in over three years. During the same time, 11,000 units were delivered, an inventory expansion of 9.3 percent, while vacancies were almost directly in line with the 10-year average as of the third quarter of 2022. The metro’s employment has also recently increased to 4.4 percent, totaling about 37,000 jobs.
Vacancy & Rent Fundamentals
The Market Rent Per Unit by Bedroom graph displays the steady incline of rent rates. The rates per unit by bedroom made a noticeable change in the middle of 2020 and have continued to rise over the next two years. This incline can be heavily attributed to an increased demand for living spaces across the state and countrywide. A three-bedroom rate has reached an average of $3,000 in 2022, and overall, the daily asking rent per square foot has reached a little under $2.30. The rates are finally beginning to stabilize and plateau as the year goes on, but there have been very few signs that the rates will fall back down to pre-pandemic levels.
The Vacancy Rate graph displays how the apartment demand in Broward County has reached new highs. The vacancy rate reached its lowest between 2020 and 2021. This rate coincides with the significant increase in market rent per unit by bedroom. Extremely low vacancy rates are favorable and show great signs for the future of Broward County. More people began moving to the area in 2020, which was great for the region especially in times of great uncertainty. Experts have forecasted that the vacancy rates will begin to rise again in 2023, based on recent market trends, but plateau in the next few years.
Sales Volume
Sales by the numbers in the past 12 months
- Sales comparables: 325
- Average price per unit: $315,000
- Average price: $15,700,000
- Average Vacancy at Sale: 4.4%
(Source: CoStar)
One of the largest apartment inventories in the country is in Broward County, and approximately 320 market-rate communities have sold in the area in the last 12 months. Annual sales volume has averaged $2.3 billion over the past five years, and in the previous 12 months, investment volume hit $5.0 billion. $4.6 million worth of multifamily assets have also sold over the past 12 months. Class A apartment buildings drove the most recent sales volume, accounting for $3.3 billion in confirmed transactions. The market cap rate has fallen this year, recording lower than the country’s average. This cap rate is forecasted to rise slightly at the end of the year and remain at a steady rate of 4.7 percent over the next four years. Experts have also predicted that the sales volume price per unit of the county will continue to rise over the next four years, reaching about $4.75 by 2026.
Construction
Broward County has a decent number of current developments underway. Experts have forecasted that the county will have several new deliveries and projects to begin constructing over the next four years, which is extremely promising for the area. Some of the top properties currently under construction include EPIC Residencies, Soleste Westgate, Plantation Midtown Square, Town Hollywood, Manor at Miramar, Modera Academical Village, Modera Academical Village, Sea View at Dania, Mayla Pompano, and Modera Coral Springs.
