The multifamily construction boom in South Florida appears to be winding down, with many developers now seeking to sell their development sites. The shift follows a period of rapid growth during the pandemic, which was later slowed by increasing costs for land, financing, and construction.
Commercial broker Tony Arellano noted that developers are offering more concessions to tenants as a large number of completed projects in 2023 and 2024 have led to suppressed rent growth. In some neighborhoods, rents are now falling.
Despite these challenges, some developers dispute that high costs are driving them to list their properties. Miguel Pinto of Apex Capital Realty said, “Some of these guys bought at the top of the market. They were overleveraged, and they thought everything ws going to keep being peachy, that the rents would be peachy, that with Trump being in power, interest rates would have dropped. None of that has happened.”
Not all developers are making public listings for their sites but remain open to selling if offered an acceptable price. According to Sebastian Faerman of Fortune Christie’s, those who had not begun construction recently will likely not proceed this cycle.
There are also cases where land-bankers—those who buy property with the intention of entitling and flipping rather than building—are listing sites after securing approvals or taking advantage of new state laws like the Live Local Act. This law allows increased density and height for workforce housing developments.
One example is Clara Homes’ decision to list its Wynwood site for nearly $11 million after purchasing it for $7.7 million and obtaining approval for a 22-story tower under the Live Local Act. James Curnin of Clara Homes explained his reasoning: “I just want to move to bigger and better things.” He acknowledged Wynwood’s high inventory but cited delays in site plan approvals as a significant factor.
Meanwhile, notable transactions continue across South Florida’s residential and commercial markets. Patrick K. Willis sold a Fort Lauderdale mansion for $27.4 million to Michael Andretti, while Favo Capital acquired a 22-story apartment tower in Hollywood through an all-stock deal involving GCF Development.
Spec home developer Todd Michael Glaser and the Posner Group are marketing a Miami Beach estate they recently purchased for $105 million at an asking price of $169 million; rental options are also available as plans advance for a potential spec mansion valued at up to $300 million.
Florida’s population is projected to exceed 24 million by 2027 according to estimates from the Demographic Estimating Conference, though growth is expected to slow compared with previous years.
