Overall, monthly rents predicted to rise by 2% to $1,677

South Florida will see nearly 16,000 apartments delivered this year, leading rents to flatten in markets with added supply, according to a recently released report.

Fueled in part by population growth, the number of apartment deliveries will be nearly double the 8,871 units that were completed in South Florida last year, according to Berkadia’s annual report and 2020 forecast. That marks the highest number of annual deliveries so far this cycle.

Last year, rents in South Florida rose only 1.4 percent, up to $1,642 a month, according to Berkadia. Occupancy rose to about 96 percent, up 60 basis points, year-over-year.

In 2020, monthly effective rent in the region is expected to grow by 2.1 percent to $1,677, Berkadia said.

Jaret Turkell, senior managing director at Berkadia, predicts that rents will continue rising with “some levering and flatness where there’s a lot of supply.”

Turkell also expects that investors from New York and California, propelled by rent reform in their home states, will continue to invest in multifamily in South Florida.

(source: article: The Real Deal, picture: A rendering of Society Las Olas (Credit: ArX Solutions)