By Gay Cororaton, MIAMI REALTORS + RWorld Chief Economist
KEY TAKEAWAYS
- South Florida multifamily asking rents rose at a stronger year-over-year pace than the nation (0.4%) in August, led by Palm Beach County (2.9%), followed by Broward County (1.8%), Miami-Dade County (1.6%), and the Martin County and St. Lucie area (0.2%).
- At the same time, multifamily property insurance expenses over the past 12 months were down 16% compared to the prior 12-month period, with 20 new insurers entering the market since 2022.
- Due to strong fundamentals, South Florida continues to attract multifamily investors, with 38,39s units under construction, or 8.8% of inventory, the most intense in the nation.
Download the August 2026 South Florida Residential Rental Market Report HERE.
South Florida multifamily asking rent growth continues to outpace the nation in August 2026
Rising rents and falling insurance costs are enhancing South Florida’s multifamily investment outlook.
In August, multifamily asking rents rose at a faster pace than nationally in South Florida. In the West Palm Beach-Boca Raton market area, rent growth accelerated to 2.9% year-over-year compared to 0.4% nationally. In the Miami market, asking rents rose 1.6% year-over-year. In the Fort Lauderdale market area, asking rent growth accelerated to 1.8% year-over-year. In the Port St. Lucie market area that covers of the major multifamily market of St. Lucie County, asking rent growth eased to 0.2% year-over-year.
Asking rents rose faster in upper-tier apartments than in lower-tier apartments. In localities where the asking rents were less than $1,500, rents were typically 3.2% lower compared to one year ago. On the other hand, in localities where the asking rents were over $2,500 to $2,999 saw a 1.5% rent growth. Given this trend, Class B/C apartments could see upgrades in their amenities and will tend to attract investors seeking value-add opportunities.
South Florida continues to see a demand for upper-tier rentals as it continues to attract higher-earning workers in professional/business/tech services, and finance. The average salary of an out-of-state job mover is $140,000 in the Miami Metro Area compared to $61,000 among in-state job movers. Miami Job Migration Generates $3.6 Billion in Net Wage Gains – MIAMI REALTORS® + RWorld
South Florida multifamily property insurance costs decline 16% from one year ago in August
At the same time that asking rents are rising, property insurance expenses are declining as Floridia’s insurance market continues to 20 new players and lower insurance costs. Falling insurance costs while rents are rising is improving the investment appeal of South Florida.
Over the past 12 months ended August 2026, the property insurance expenses of multifamily operators decreased 16% compared to prior 12-month period among operators using the Yardi platform.
In Miami-Dade County, property insurance expenses decreased to $1,369/unit, down 17.5% from one year ago. In Broward County, property insurance costs decreased to $1,250/unit, down 15% year-over-year. In Palm Beach County, the property insurance costs decreased to $1,154/unit, down 10.8% from one year ago. In Martin and St. Lucie counties, the average annual property insurance costs in the past 12 months decreased to $1,042/unit, down 21.1%.
38,392 multifamily units under construction of which 6,293 units in Fully Affordable projects
With strong demand fundamentals, South Florida continues to see strong multifamily investment activity that is the most intense in the nation. As of August 2026, 38,396 multifamily units in projects with at least 50 units are under construction in South Florida, adding 8.8% to the existing stock of 434,628 multifamily units, the most intense construction activity in the nation.
Fort Lauderdale, Miami-Edgewater, Hialeah, Homestead, and Miami-Liberty City have the most multifamily units under construction. . The largest is Downtown 6th in Miami (824 units) and Metro Parc North in Hialeah (661 units), both fully market-rate. The Melo Development Group, Baron Property Group, Terra Group, 13th Floor Investments, and Oak Row Equities, are some of the largest investors behind the construction of multifamily developments in South Florida
Florida’s Live Local Act is incentivizing more affordable housing development. Of units under construction, 6,293 units or 16.9% are in Fully Affordable projects, with completions ramping up to 3,996 units in 2027, The largest Fully Affordable projects underway are Liberty Square Oasis in Miami by the Related Group ( 408 units), Lakeview at NoMi in Miami by Integra (342 units), and Southpointe Vista in Miami by McDowell Properties (332 units).
In addition, 10,578 units are under construction in Partially Affordable projects where a fraction of tenants meet an eligibility criterion for the project to receive federal or local government funding support. The largest Partially Affordable Buildings under construction are the 578-unit Upland Park in Miami (Terra Group), the 576-unit Ambar Station in Homestead (Vestcor), and the 502-unit The Arcadian in Fort Lauderdale (Fuse Group).
