The Law Offices of John Caravella, P.C. does not own this content. This content was created by the South Florida Business Journal. To learn more about Erik Bojnansky, please click within.
For five years, more apartments were built in a ZIP code covering Fort Lauderdale’s downtown and waterfront areas than in any other ZIP code in South Florida, a recent study stated.
According to a report from RentCafe, there were 4,481 apartments built in the 33301 ZIP code between 2018 and 2022. The 33301 ZIP code includes part of downtown Fort Lauderdale as well as the Intracoastal waterfront neighborhoods of Nurmi Isles, Seven Isles, and Idlewyld.
Other ZIP codes where large numbers of apartments were finished in 2018-2022 are:
- ZIP code 33132 in downtown Miami: 4,184 apartments
- ZIP code 33137 in Miami’s Omni and Edgewater neighborhoods: 3,324 apartments
- ZIP code 33136 in Miami’s Overtown and Spring Garden areas: 2,285 apartments
- ZIP code 33178 in Doral: 1,916 apartments
- ZIP code 33025 in Miramar and Pembroke Pines: 1,827 apartments
- ZIP code 33032 in Naranja and Princeton in South Miami-Dade: 1,725 apartments
- ZIP code 33401 in West Palm Beach’s downtown area: 1,612 apartments
- ZIP code 33125 in Miami’s Little Havana: 1,300 apartments
- ZIP code 33426 in Boynton Beach: 1,333 apartments.
Fort Lauderdale’s 33301 ZIP code had the 14th highest volume of apartments in the U.S. completed in the 2018-2022 era. Other local areas that made RentCafe’s top 50 list include downtown Miami’s 33132 (No. 17), and Miami Edgewater’s 33137 (No. 32).
The top five ZIP codes in the U.S. were 20002 in Washington, D.C. (7,378 units), the 20003 also in D.C. (7,225 units), the 11101 in Queens, New York (7,081 units), the 37203 in Nashville (6,806 units), and the 75034 in Frisco, Texas (5,872 units).
South Florida’s rental market has boomed since the pandemic as more high-income households migrate to the region from other parts of the U.S. to avoid state income taxes and find better weather. In response, developers have built thousands of apartments, particularly near the downtown areas of Miami, Fort Lauderdale, and West Palm Beach.
In the case of Fort Lauderdale, the apartment development boom boosted the city’s 2.2-square mile downtown area to 24,429 people and increased the median household income to $146,358 a year, according to a recent report from Colliers and Fort Lauderdale’s Downtown Development Authority.
The enhancement of public spaces and infrastructure, and its proximity to the beach and retail, have helped make the 33301 ZIP code a desirable place for renters, stated Veronica Grecu, senior research analyst for RentCafe.
Rising home prices also have helped enhance the demand for apartments. As of June 30, the median household value of a home in the 33301 ZIP code was $911,762, an increase of 67% from five years ago, according to data collected from the Business Journal.
“The demand for apartments in ZIP code 33301 has been fueled by a combination of factors including rising home prices and mortgage rates, as well as a shift among millennials toward renting rather than owning,” Grecu stated.
According to another study by RentCafe, 5,465 apartments were built in the entire city of Fort Lauderdale between 2020 and 2022. However, some developers have told the Business Journal they’re now looking at other South Florida locations beyond the downtown areas, such as Hialeah or Pompano Beach, due to over saturation of apartment development and rising land costs.
RentCafe is a rental listing website operated by Santa Barbara-based proptech company Yardi.
John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached online or by email: [email protected] or (631) 608-1346.This is a general information article and should not be construed as legal advice or a legal opinion. The content above has been edited for conciseness and additional relevant points are omitted for space constraints. Readers are encouraged to seek counsel from a construction lawyer who has experience with Long Island construction law for advice on a particular circumstance.
The Law Offices of John Caravella, P.C. does not own this content. This content was created by the South Florida Business Journal and was published on October 5th, 2023. To learn more about Erik Bojnansky, please click within.