Apartment Investment Values Strong Despite Forecast of Rising Vacancies

MIAMI-Rising single-family home prices in South Florida, a dwindling supply of developable land and continued demand for apartment units will strengthen the area’s multifamily market over the next 12 months despite projections of rising vacancy rates and rents and a construction slowdown, a new study by Marcus & Millichap Real Estate Investment Brokerage Co. shows.

The report says South Florida is feeling little effect from the national economic malaise. “While the economic downturn stunted employment growth in most markets, South Florida managed an increase of 2.7%,” the report says.

“Employment growth will continue to strengthen during the course of the year, and strong demographics will ensure the long-term health of the local apartment market,” Gene A Berman, senior vice president/regional manager of the firm’s Fort Lauderale office, says in a prepared statement.