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Apartment Demand Catching Up to Supply in Florida

Demand reached nearly 68,000 units annually during Q3.

By Kristen Smithberg | November 13, 2024 at 05:39 AM

Apartment demand in Florida is catching up to elevated supply after slowing significantly in 2023, according to an analysis by RealPage. Demand is once again headed for a peak, reaching nearly 68,000 units during the third quarter.The state attracted a large wave of new residents during the pandemic as the work-from-home trend accelerated, with demand volume peaking in 2021. Migration has continued into Florida since then, with even smaller markets gaining notable ground, the report said.Concurrently, Florida has become one of the nation’s fastest-growing states for apartment supply and completion volumes continue to grow. About 77,600 units became available in Florida during the year ending with the third quarter, which was the biggest annual completion tally in the state since RealPage began tracking apartment markets. The state’s five-year average for annual deliveries is just over 48,700 units.Since 2020, nine of the nation’s 30 fastest-growing apartment markets were in Florida. Lakeland’s inventory increased by 39% over the past four years, ranking second to Huntsville, Alabama. Other top regions in The Sunshine State in terms of inventory growth have been Cape Coral, Sarasota, Jacksonville, Palm Bay, Port St. Lucie, Deltona, Orlando and Pensacola.Miami and Tampa also ranked high for both total deliveries and percentage gains, according to RealPage.Because supply largely follows demand, the markets in Florida with the steepest apartment demand track closely with the markets with strong deliveries. Lakeland has enjoyed a 34% increase in occupied units since 2020, and Cape Coral, Sarasota and Jacksonville each had a greater than 20% increase in occupied units. Only the Florida college markets like Gainesville and Tallahassee have lagged their state peers, said RealPage.

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