Market Insights

Why Invest in Multifamily in Florida

2.5M population increase

By the year 2030  Florida’s population is expected to grow by 2.5 million

Of the entire United States, Florida is one of the fastest-growing states with a consistent population growth rate of at least 1.5% each year. Last year, according to the U.S. Census Bureau, Florida saw the biggest increase of any state with a 1.9% rise in population. Such aggressive growth sets this region up to see a spike in the demand for housing. And, this isn’t a short-term spurt; by the year 2030, Florida’s population is expected to grow by 2.5 million. The demand for multifamily housing is solid in Florida. 

7.7% growth in renter households

The desire to rent vs. buy has grown 7.7% since 2020

Overall, rent growth has shifted from the gateway markets to markets that have a stronger population growth like Florida, according to CBRE. In a LinkedIn newsletter from iSourceOut, they noted that the desire for apartment renter households has grown 7.7% since 2020. In fact, according to the U.S. Census Bureau, 33.5% of the Florida population rented last year. Also included in the iSourceOut newsletter was a quote from Greg Willett, First VP and National Director of Research Services with Institutional Property Advisors. Willett stated: “Florida is adding renter households at an impressive pace, realizing some of the strongest demand for apartments seen anywhere across the country….” This is just another testament to the apparent demand for multifamily in this region. 

27% higher average annual household income

In 2023, Florida’s average household annual income was roughly $123,400 vs. the United States mean of $97,400

Data reflecting January through August of 2023 shows that among the households that have moved into professionally managed properties in Florida’s major metro areas, the average household annual income was approximately $123,400. This number is roughly 27% above the United States mean of $97,400 according to Willett. Higher incomes among renters like we’re seeing in Florida opens the door to the probability of increased rents and occupancy rates, which can lead to higher investor returns.

0% state income tax

Zero state income tax can provide more lucrative investment gains

In addition to the economic environment, Florida has a number of laws and regulations that are favorable to multifamily investors, making it one of the most landlord-friendly markets in the United States. Real estate investors have greater flexibility and control over rental properties with minimal rent control laws and eviction protections. Florida also has zero state income tax and a number of federal tax benefits, such as depreciation deductions. For those who reside in Florida, these factors can contribute to even more lucrative  investment gains. 

95.3% average occupancy for multifamily properties

This occupancy rate is 2% higher than the United States average, according to CBRE

Savvy investors know occupancy rates are one of the most important factors to consider when evaluating multifamily properties. A healthy occupancy rate can lead to higher rental income and better returns. According to CBRE, Florida properties have an average occupancy rate of 95.3% for multifamily properties, which is 2% higher than the United States average. 

Estimated shortfall of 82K multifamily units

To keep pace with Florida’s demand over the next five years, there is an estimated shortfall of 82,000 multifamily units in Florida according to The Shimberg Center for Housing Studies

At Roers Companies, we scour the nation’s high-growth, low-inventory neighborhoods for opportunities to elevate the housing options for residents. We’ve identified Florida, specifically southwest Florida, as a region that shows great potential for high investor returns. Florida is facing an significant shortfall of multifamily units, and we’re excited to help fill that need in growing communities. 

Invest in Florida

Roers Companies is proud to offer investment opportunities in a luxury market-rate apartment project in Port Charlotte, Florida to be named Marisol. Marisol is a 292-unit property that offers a desirable mix of studio, one-, two-, and three-bedroom apartment homes. Our Port Charlotte development is situated in a prime location near golf courses, restaurants, parks, retail shops, and — of course — the turquoise waters of the Gulf of Mexico. 

Project highlights:

– Based on current trends, YoY rent growth is expected to increase by approximately 3% annually in the years ahead (CoStar)

– The Port Charlotte property appeals to commuters priced out of Fort Myers or Sarasota, while offering desirable on-site and neighborhood amenities

– The nearby Sunseeker Resort opening this fall will drive tourism-industry demand for the community and bring 11,000 workers to the area

NO OFFER OF SECURITIES; DISCLOSURE OF INTERESTS: Under no circumstances should any material enclosed herein be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the confidential Private Placement Memorandum relating to the particular investment. Access to information about investments with projects undertaken by Roers Companies LLC, Roers Companies Project Holdings LLC, or any of their respective affiliates is limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who are generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments. Investment outcomes vary. Past success does not guarantee future results.

Sources: U.S. Census Bureau, CoStar, LinkedIn, iSourceOut, The Shimberg Center for Housing Studies, CBRE

Investing Opportunities

Current Investment Opportunities

Investment opportunities for new multifamily projects are now open.

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