SOURCE: Axiometrics Inc.

Axiometrics Inc.

December 19, 2014 11:15 ET

West Palm Rents Keep Rising

DALLAS, TX--(Marketwired - December 19, 2014) - The West Palm Beach apartment market continued its effective-rent-growth surge in November 2014, leading a strong month for the entire South Florida apartment industry, according to data from Axiometrics, the leader in apartment market research and analysis.

The Miami-Fort Lauderdale-West Palm Beach area remained the second hottest with three of the top 13 markets nationwide, behind only the San Francisco Bay Area.

The West Palm Beach-Boca Raton-Boynton Beach Metropolitan Division was the big story in November. Annual effective rent growth was 9.1%, a 91-basis-point (bps) increase from October's 8.2% and a 531-bps rise from the 3.8% recorded in November 2013. The average West Palm Beach rent increased $84 in the past 12 months, to $1,401.

"Landlords are in a perfect position to push rents," said Stephanie McCleskey, Axiometrics Vice President of Research. "Job growth is strong at 2.7%, and the unemployment rate is below 6% for the first time since 2008. Combine that with the fact there isn't a lot of new supply -- only 1,437 new units came to market in 2014 and we've identified only 1,839 more for 2015 -- and you see demand exceeding supply."

Annual effective rent growth

The No. 10 Fort Lauderdale-Pompano Beach-Deerfield Beach and the No. 13 Miami-Miami Beach-Kendall metropolitan divisions experienced more moderate increases in November. The Fort Lauderdale market's rent growth of 6.6% was an increase from 6.0% in October and 2.4% in November 2013. Miami's 6.3% annual effective rent growth in November was stronger than October's 5.7% and November 2013's 5.1%.

Renters are paying an average of $1,390 in Fort Lauderdale and $1,498 in Miami, both $83 more than in November 2013.

Occupancy in all three divisions dropped slightly in November: Miami occupancy was 95.8%, West Palm Beach's to 95.6% and Fort Lauderdale's was 95.4%.

"Occupancy is following the usual seasonal trend," McCleskey said. "Just at a higher level than in past years."

About Axiometrics
Axiometrics improves property and portfolio performance for apartment investments. Confident investment decisions begin with reliable, timely information. No one has more accurate, detailed, and up-to-date research on the apartment and student housing markets. Learn more at www.axiometrics.com or by calling 214-953-2242.

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