This Small Florida Market Claims Highest Rent Growth in the South
Florida’s small apartment markets have made notable performance strides during the past year, and one locale – Naples – is now logging the strongest rent growth in the South. Operators in Naples raised effective asking rents 19.5% year-over-year as of July, an unprecedented improvement for this market, where rents were being cut several months before the COVID-19 pandemic began. In September 2019, rent change turned negative and cuts persevered until January 2021. Very high monthly rent growth in 2021 comes as the market is digesting big volumes of new supply, but the current rent growth pace could be tough to maintain moving forward, as even more product is under way. Total inventory grew 1.9% in the year-ending 2nd quarter 2021, and another 1,600 units are under way, which will swell the existing base by another 5.3%.