Wednesday, June 30, 2010

Competition For Apartments is Heating Up in South Florida

With vacancy rates dropping to their lowest levels since 2006, it’s getting harder to find a rental apartment in South Florida,

Broward County’s vacancy rate has dropped to 5.3% in May from 6.8% in May 2009, according to a report this week from Reinhold P. Wolff Economic Research in Oakland Park. Palm Beach County’s rate fell to 6.3% from 7.9%.

Not surprisingly, rental rates are on the rise. From February to May, the overall monthly rent for apartments increased 1.5% in Broward and 0.8% in Palm Beach County, the research firm said.

According to Keith White, president of Reinhold P. Wolff, a lack of new development is the main culprit for the tighter market. Furthermore, the number of foreclosed homeowners seeking rentals after losing their homes to lenders. "There's no question it's a factor," he stated. Even better news: White expects demand to exceed supply for the next three years!!!

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