MIAMI—Demand for condos is outpacing supply in Downtown Miami. So says the Miami Downtown Development Authority’s third quarter Residential Market Trend Update.

Over 95% of all residential units in the downtown Miami area are occupied, including the limited remaining inventory of developer-owned condo units and units still held by major investors. Meanwhile, the inventory of new, unsold condominium units still subject to first time market sales in the downtown area dropped to 2,200 units. That’s down nearly 50% from a year ago and reflects an average of about 100 new unit sales per month during the third quarter.

“The Miami DDA has been tracking condo sales and rental activity since the market bottomed out a few years ago and what we are seeing is a migration into our urban core, which is not only reducing inventory, but stabilizing prices,” Alyce Robertson, executive director of the Miami DDA, tells GlobeSt.com. “Foreign investment is certainly playing a part in this growing trend, which combined with residential living, is creating a tightening of the market much faster than most analysts would never have predicted.”