May 25, 2022
YourObserver.com recently published an article regarding several factors contributing to a rise in apartment rental rates nationwide. The first and most obvious reason is limited supply of multifamily and residential real estate properties; however, they also point to a number of other reasons. It goes beyond profiteering, “as demand continues to exceed supply and interest rates climb.”
The article focuses on Florida’s multifamily real estate demand in particular citing that Florida is one of six states in the nation that have seen rents climb 20-25% since 2019. Florida has seen the highest rise in apartment rental rates nationwide. This is highlighted by the North Port-Sarasota-Bradenton metro, which saw an increase in rent of nearly 17% in just two years.
The Multifamily Firm’s Phil Ginexi is quoted in the article, stating that the market is “absolutely insane.” He elaborates on this: “We’re seeing record sale prices on a per-unit basis and certainly on a compressed cap rate basis as well.”
These are certainly times that don’t have a precedence in Florida’s multifamily market, and the other experts that weigh in throughout the article also see that it is a very fluid situation.