By Gay Cororaton, MIAMI REALTORS Chief Economist
Key Takeaways
- The average rent per unit in buildings with over 50 units rose at a modest year-over-year pace of 0.8% in the Miami market area as completions outpaced net absorption.
- Workforce rental housing rents rose faster at 2.7% while rents in higher tier rental units were flat, with over 75% of new completions catering to renters by choice.
- Roughly 36,000 units are under construction in Southeast Florida, with half in the Miami market area
Download the October 2025 Southeast Florida Rental Market Report HERE
Actual rents on buildings with over 50 units past the lease-up stage rose at a modest pace in October with completions outpacing net absorption, putting downward pressure on rents on new leases.
The average actual rent rose at a modest year-over-year pace in the Miami market (0.8%), followed by Port St. Lucie market (0.7%), and the West Palm Beach-Boca Raton market (0.5%), but decreased in the Fort Lauderdale market (-0.5%). Despite the modest pace, rents rose in most market areas at par or slightly above the national pace (0.5%).
Miami ranks No. 1 in the U.S. in Apartment Construction. Miami had more units permitted during the past 12 months, at 7,257, than any other city or place tracked by RealPage
With new completions outpacing new deliveries and with occupancy rates ticking downward, operators sought to attract new tenants by lowering rents on new leases. The Fort Lauderdale market had the largest negative new lease trade-out (-1.8%) , followed by the Palm Beach-Boca Raton market (-1.1%) and the Miami market (-0.7%). Only the Port St. Lucie market had a positive new lease trade-out (0.9%).
However, the renewal lease trade-out still rose by over 3% in all market areas, as occupancy remains high at around 95% in most market areas. However, with new lease rents already outpacing in-place rents, renewal rents could increase at a smaller pace in the coming months as landlords calibrate rents to retain existing tenants, along with optimizing concessions, amenities, and services to provide the most value for tenants while maintaining profitability.
Over the past 12 months through October, net absorption (new leases less vacated) was positive in all market areas, with the highest net absorption in the Miami market (10, 502), followed by the Fort Lauderdale market (5,282), and the West Palm Beach-Boca Raton market (2,167 units). However, net absorption fell below completions during the same period in the Miami market (10,502 units) and the West Palm Beach-Boca Raton market (2,167), with only the Fort Lauderdale market posting more absorbed units than completions (5,282). Yardi Matrix’s supply forecast for 2026 shows fewer completions in 2026 than the current net absorption, which will help rents to increase at a modest pace.
Workforce rental housing rents rose faster than in the upper-tier rental housing
Rents in workforce housing rose faster than rents in the upper tier units, indicating more intense competition at the lower tier of the rental market.
In the Miami market, the average actual rent for workforce housing-lower tier ( C-. D) units rose 2.7% year-over-year in October 2025, while the rent for workforce housing-upper tier (C+, C) units rose 2% year-over-year. In contrast, the average actual rent for upper mid-range units (A-, B+) fell 1.4% year-over-year, while the rent on units that cater to discretionary renters or renters by choice (A+,A) was unchanged from one year ago. In the Fort Lauderdale market, the average rent on workforce rental housing-lower tier rose 8.8% while the rent on discretionary units fell 0.5%.
Half of 36,036 units under construction are in the Miami market area
As of 2025, there are 36,095 units in buildings with over 50 units under construction in Southeast Florida, adding roughly 4.5% to the total existing stock. Half of these units are in the Miami market area (18, 565). The city of Miami has the most units under construction (11,132), followed by Fort Lauderdale (4,389), West Palm Beach (2,000), and Port St. Lucie (1,031).
Melo Development, the Namdar Group, Flow, Atlantic Pacific Companies, Hines Interests, The Terra Group, Trammel Crow, Vestcor Companies, PMG, and the Naftali Group lead the largest multifamily development projects in the cities of Miami, Fort Lauderdale, and Homestead.
