South Florida multifamily has not been immune to the challenges faced by all of us. However, now that we are in the second half of 2020 there are some clearer trends that are becoming apparent in the South Florida multifamily market. In this edition, we have highlighted key analysis which will shape the market going forward.
THE BIG PICTURE
• The CARES Act has proven to be effective in buoying the multifamily industry—particularly via the $600 weekly Federal Pandemic Unemployment Compensation (FPUC) and Pandemic Unemployment Assistance (PUA)—as multifamily rent payments have held through July.
• In general, the pandemic relief bills have helped sustain multifamily rent payments explaining why delinquency rates have remained relatively stable with the government’s support.
• As of mid-year 2020 multifamily rents are stable. There is marginal increase in vacancy due to new supply.
• The South Florida unemployment rate is 11.3% totaling 320,311 unemployed people. At the beginning of the year the unemployment rate was 2.81%. In the space of six months the South Florida unemployment rate soared from a 50-year low to a record high in April.
• With few exceptions, multifamily property values continue to hold. Covid, the election and collections will dominate the investment landscape in second half of 2020.