Although apartment sizes in the US have been shrinking, Miami has emerged as an exception, where apartments have grown larger by adding an additional 105 square feet over the past 10 years, but current developments in the city may end this trend.
According to a report by RentCafe, the average square footage of new apartment sizes in Miami is 912. Ten years ago, the average rental square footage of an apartment was 807. However, apartments in the area are not expected to increase, the report said, and rental sizes are expected to reduce by around 90 sq ft.
Nationally, new apartment development averaged about 887 square feet, down 54 square feet over the past decade. The largest year-over-year decrease in square footage occurred in 2022, down 30 square feet from 2021, due to more development of studios and one-bedroom apartments, which account for 57% of the nation’s home market.
Tallahassee led the nation with the largest apartments in new developments with an average size of 1,182 square feet, while the average size of all apartments is 991 square feet.
The report also noted that all Florida cities recorded larger apartments from new development than 10 years ago. Gainesville apartments have added an average of 126 square feet in new developments over the past decade; St. Petersburg has added an average of 54 square feet; Jacksonville has added about 42 square feet to his apartment; Tampa added about 32 and Orlando about 23 square feet.
RentCafe senior analyst Doug Ressler said the Miami metro area is expecting a significant amount of new apartment supply over the next 36 months, with approximately 10,904 new units adding 7.1% to the existing stock in 2023; 8,857 new units in 2024 and approximately 10,529 new units in 2025.
Miami Metro is the eighth-largest multi-family market with 342,845 completed units and 289,401 units in development, of which 39,713 had broken ground as of December, according to data from Yardi Matrix.
In addition, the average new lease asking rent is $2,356, up 8% from 2021, ranking Miami 45th in the nation for year-over-year rent growth.
“Miami was the most competitive rental market in America this year,” said Mr. Ressler. “Two-thirds of renters renewed leases. The state’s lack of income tax, business-friendly climate, and booming tech scene attract Millennials and even Gen-Xers to work and live in the Sunshine State.” Did.
The real estate market, he said, is “moving from an artificially inflated environment of 15 years of low interest rates and price inflation that [Federal Reserve] Created to keep the economy in the next normal. The markets are trying to figure out where they will land, and it may be nothing like the last 15 years.
As pricing adjusts with new income rate increases, new construction is harder to find. “Rising interest rates don’t really slow things down,” he said. “Nobody knows when inflation will come down, or how high interest rates will go, and no respite is in sight.”