Fort Lauderdale Multifamily Market: Demand Surges Amid Growing Supply

The multifamily market in Fort Lauderdale has experienced a strong resurgence in demand since mid-2023, with over 2,300 units absorbed this year—well above the five-year quarterly average of 900 units. This rebound follows a slowdown in 2022 and has helped moderate vacancy rates, though new developments are on the horizon.

Growing Supply and Its Impact on Rents

Fort Lauderdale is set to add a significant number of new apartments, with its inventory pipeline representing 6.8% of existing supply. This increase, particularly in luxury units, is expected to put downward pressure on rent growth as vacancies rise. By the end of 2025, vacancies for 4 & 5 Star apartments are projected to hover around 10%, while those for 1 to 3 Star units will likely stay below 7%.

Shifts in Demand

Demand for luxury units has grown by over 7% annually in 2024, reflecting a broader trend towards newer, high-end apartments. However, the continued demand for affordable housing is driving rent growth in submarkets like Oakland Park/Lauderhill and Pompano Beach/Deerfield Beach, where renters seek more affordable options.

Investment Trends

Over the past year, multifamily sales in Fort Lauderdale totaled $1.4 billion, below the five-year average of $2.5 billion. Rising cap rates and economic uncertainty have begun to impact pricing and transaction volumes, with institutional investors becoming more cautious.

As Fort Lauderdale's multifamily market navigates rising demand and increasing supply, staying informed on these trends is crucial for making strategic investment decisions.

Contact us today for more insights or to explore investment opportunities in Fort Lauderdale's dynamic real estate market.