Multifamily has been one of the best-performing industries throughout the pandemic. According to Yardi Matrix data, robust demand pushed rent growth to record highs, placing 2021 on track to be among the best years since the 2008 downturn.
Demand continues to fuel development and, following a moderate slope during the first weeks of the health crisis, construction activity has largely bounced back in 2021. Yardi Matrix expects deliveries to amount to roughly 334,000 units by year-end.
Consistent growth was registered in most fast-growing secondary markets, but also in several gateway metros. In the ranking below, MHN showcased the top five markets for deliveries in 2021 through July by the number of units, based on Yardi Matrix data. Combined, 44,168 units came online in these metros, which is slightly above the 38,275 units that were delivered last year during the same period.
In July, the construction pipeline in these markets comprised 170,913 units underway. Not surprisingly, four of these markets also held the top spots for transaction activity during the first half of 2021.
The pandemic enhanced Miami’s appeal, attracting even more companies looking to relocate from New York City and California markets—this has spurred robust demand for multifamily projects.
Through July, 7,173 units came online in the metro, with more than 6,625 units delivered during the same period last year. The construction pipeline is second only to Dallas and Washington, D.C., with 38,147 units underway. Miami is one of the top markets for absorption, too, posting a 180-basis-point occupancy increase in stabilized properties in the 12 months ending in July, to 96.4 percent.
Deliveries were almost evenly distributed between Miami metro (2,391 units), Ft. Lauderdale (2,648 units) and West Palm Beach-Boca Raton (2,134 units). Occupancy increased the most in West Palm Beach-Boca Raton, climbing 250 basis points, to 96.6 percent. Miami Metro followed, with occupancy improving by 160 basis points, to 96.2 percent, while the rate increased 150 basis points in Fort Lauderdale, to 96.4 percent.
One of the largest projects delivered in the metro in 2021 through July was ZOM Living‘s Las Olas Walk, a 456-unit Lifestyle property completed in February in Fort Lauderdale at 106 S. Federal Highway.