Florida Apartment Supply Pressuring Rent Growth
Florida is one of the nation’s fastest growing apartment regions, and all that new supply is putting downward pressure on rent growth. Among the eight geographic regions defined by RealPage, Florida is the third-fastest growing area, with net inventory growth of 3% in the year-ending 2nd quarter 2023. That performance followed the Carolinas and the Mountains/Desert region, but not by much. While Florida has seen some of the nation’s strongest apartment demand in recent years, even solid absorption has not been enough to keep up with big volumes of new supply. And those intense completions volumes are putting downward pressure on rents. Just a year ago, annual effective asking rent growth in the Sunshine State reached into the double digits, but prices are now in decline, falling 0.7% year-over-year as of August.
For more information on the state of the Florida apartment region, including forecasts, watch the webcast Market Intelligence: Q3 Florida Update.