Apartment Construction in Miami Leads the U.S.

Key Points

• 7,257 apartment permits issued in Miami over the past 12 months—highest of any U.S. metro (≈ 2,500 in June alone)

• Apartment starts jumped by 1,186 units Q2 vs Q1 2025, and by 2,471 over year-ago Q2

• Miami leads rental competitiveness: RCI score of 96.7, occupancy ~96.6%, 21 applicants per unit, median rents now moderating

Investors and developers, take note: Miami has surged to the top of U.S. multifamily permitting charts, reflecting a powerful pivot back into apartment development, as reported by Bisnow. This uptick signals a growing recognition from builders that the rental market remains tight and ripe for investment. 

Miami’s Rebound in Multifamily Development

• According to RealPage’s analysis of Census Bureau data, 7,257 apartment units were permitted in Miami during the year ending June, eclipsing all other metros. Over 2,500 were granted just in June.

• Construction starts rose significantly in Q2 2025: up 1,186 units versus Q1, and 2,471 units year‑over‑year. Miami and Houston were the only markets tracked to record starts increases in that period.

Broader Trends & Context in Development

• Despite the recent surge, Miami still permitted 2,500 fewer units year-over-year, reflecting a broader downturn in multifamily permitting amid high financing and construction costs.

• RealPage and Census data suggest a national bottoming-out of multifamily permitting cycles, with signs of a gradual rebound in select markets—Miami being among them.

Rental Market Intensity: Demand Still Crushing Supply

RentCafe Rental Competitiveness Index (RCI)

• Miami leads the nation with an RCI score of 96.7 against the U.S. average of 74.6.

• 96.6% occupancy, units renting in just ~36 days, and 21 applicants per available unit—double the national average.

• This level of demand intensity is pushing developers to respond with new supply even if financing remains expensive.

Rent Trends

• Median rents in Miami have edged down: one-bedrooms –3.6% YoY, two-bedrooms –nearly 7%, according to Zumper’s July data.

• Average monthly rates still high at ≈ $2,650 (1BR) and $3,500 (2BR).

Why It Matters for CRE Investors & Brokers

Supply-Demand Alignment

• Even with permits lagging pre‑2024 levels, the latest uptick in starts indicates developers are pushing forward, betting rising absorption will justify the investment.

Rental Market Remains Overheated

• With 21 applicants chasing each open unit, high occupancy, and fast lease turnover, landlords have pricing leverage—especially in constrained ownership or equity markets.

Condo vs. Rental Trade‑off

• Historically, Miami developers have favored condos over apartments during the cost squeeze. Now that rents remain near peak, apartments are again becoming viable.

Summary for Stakeholders

Strategic Insight	Impact
Multifamily permitting re-accelerating in Miami	Construction pipeline filling fast
Rent competition intensifying despite easing rents	High landlord bargaining power
Broader permitting upturn signals broader trend	Market cycle may shift nationally

Miami is no longer waiting at the sidelines. With 7,257 units permitted, starts rising quarter-over-quarter, and rental demand staying relentless, the metro is emerging as a top opportunity for multifamily investment. For developers and landlords, this signals a reopening window—while brokers and leasing agents remain in historically competitive territory. 

By tracking these dynamics, CRE players can anticipate where volume is headed, where rents might stabilize or rebound, and when Miami could offer returns more aligned with its “Wall Street South” status.