West Palm Beach Multifamily Market Report
2024 Investment Forecast
Young Adult Population Growth Generates Renter
Demand as Operators Incur Increasing Expenses
Younger populace underpins apartment use in West Palm Beach. Since the onset of the pandemic, the metro has outpaced the rest of Southeast Florida in population growth. This feat is partially the result of positive momentum within the 20- to 34-year-old demographic, a dynamic contrary to Fort Lauderdale and Miami. This is aided by new job opportunities, as the local pace of hiring exceeds the national average in 2024. Meanwhile, a high cost of homeownership is encouraging apartment usage for many new residents. Entering 2024, West Palm Beach noted the nation’s largest increase to its median home price relative to 2019, exceeding 65 percent. This helps reduce the impact of an anticipated record supply influx, as vacancy lifts at a substantially slower pace than the prior two periods, while rent growth accelerates. The Boca Raton area is further protected from this supply-side pressure as less than 10 percent of metro deliveries are anticipated to complete here in 2024. While stock expands at a similar rate as in 2023 around the Delray Beach area this year, local vacancy stood closer in line to its 4.6 percent pre-pandemic measure than any other metro submarket.