Anticipated population growth has multifamily investors spending more on apartment buildings despite sales volume dropping by 50% for the first half of 2020, compared to the year-ago period, in Miami-Dade and Broward, according to a sales report.

Price per square foot for multifamily units slumped by 29% in Broward year-over-year, but Miami-Dade saw a 25% increase in price per square foot, according to the Cushman & Wakefield South Florida 2020 midyear forecast. The report compared sales data for the first and second quarters of 2019 to 2020.

The price per square foot rose year-over-year by $50 per square foot in Miami-Dade, from $200 to $250 per square foot. Multifamily units sold at about $180 per square foot in early 2017. 

The price per square foot dipped in Broward by $70 per square foot, from $240 to $170 per square foot. Multifamily units sold at about $240 per square foot in early 2017.

“The multifamily pricing overall has held up better than expected. With the fundamentals being the way they are, low interest rates are contributing to the stability of the product right now,” Weaver said.

By late 2021, the population in Miami-Dade is anticipated to gain 0.6% new residents — reaching 2,754,183 — and Broward is anticipated to grow by 0.8%, bringing its total population to 1,986,839 people.

Sale prices for houses and condos continue to increase during the pandemic, according to the Miami Association of Realtors monthly sales reports.

Multifamily investors from New York and California are showing the most interest, Weaver said.

“The more people feel more comfortable to hop on a plane and travel, we’ll likely see more sales.”