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Broward Multifamily Sector in Distress

FORT LAUDERDALE, FL-A downturn in employment will soften demand for rental housing.

By Carl Cronan | Updated on May 21, 2009

FORT LAUDERDALE, FL-Declining employment in Broward County over the next several months will push apartment vacancy above 8% by the end of this year, according to Marcus & Millichap. Property fundamentals weakened through the first quarter, with mass layoffs possibly pushing residents out of rental housing.

The countywide jobless rate measured 8.5% in March, up from 4.3% a year earlier, according to the Florida Agency for Workforce Innovation. Marcus & Millichap predicts local unemployment will exceed 10% this year, though layoffs may be offset by the roughly 35,000 jobs expected to be created by the rebuilding of Interstate 595 starting in late summer.

Asking rents for Broward County apartments are projected to decline 3.6% this year to $1,075 per month, with effective rents retreating nearly 4% to $1,009 per month, based on Marcus & Millichap’s research. Local monthly rental rates ranged from approximately $950 in West Hollywood, Pompano Beach and Deerfield Beach to nearly $1,200 in Plantation, Miramar and Pembroke Pines.

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