South Florida, FL Multifamily Market Report | Lee & Associates | Q4 2025

Market Overview

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South Florida's multifamily market is absorbing the consequences of its most significant development cycle on record. With 52,189 units under construction and trailing 12-month absorption falling to 13,934 units from 18,082 earlier in the year, concessions are re-emerging as a lease-up tool and vacancy ticked up to 6.7%. Asking rents held flat at $2,287 per unit, offering little buffer against rising operating costs. The capital markets side told a different story: sale pricing surged to $327,273 per unit from $242,065 a year prior, cap rates compressed to 6.32%, and several transactions cleared $150 million. Institutional buyers including Mitsubishi Estate remained active, signaling continued long-term confidence in the region despite near-term supply pressure.

‍About Lee Associates

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Lee Associates is a nationwide commercial real estate brokerage serving investors, owners, and occupiers across property types. Their South Florida Q4 2025 multifamily market report tracks absorption, vacancy, asking rents, and capital markets activity to help investors and owners assess market conditions. To read the full report, click here.