There is a great deal of hand-wringing about the huge number of multifamily deliveries taking place nationwide…

(575,000 delivered in 2023, with 475,000 more coming this year, and back to a more normal 350,000 in 2025, according to CoStar). The rate of growth of rents has slowed dramatically, falling in many parts of the country. This supply will remain a headwind for rent increases for the next 12 to 24 months.

The story is similar in Miami, as all of southeast Florida is now part of what many are calling Wall Street South. Stephen Bittel, CEO of development company Terranova, put it this way in a recent phone conversation: “first, the bosses came in and bought in the $10 million range; the next wave bought in the $3 million to $5 million range, and now the workers are coming in and buying in the $400,000 to $600,000 range.” Of course even within a market, there are huge differences from submarket to submarket. In Miami, the downtown is facing a huge pipeline relative to the demand, but Hunter Housing Economics’ market studies show that the demand is expected to be high enough to absorb the supply over the next four years in other urban Miami submarkets such as Wynwood, Edgewater, and Miami Beach.