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Category: Multifamily Tags: Palm Beach

Palm Beach, FL Multifamily Market Report

Market Overview

The Palm Beach multifamily market has witnessed robust demand, with annual apartment absorption at approximately 3.0%. However, this growth has decelerated from the peak of around 8.2% in Q3 2021 due to factors such as affordability concerns and slower population growth. The average median income in Palm Beach sits below the national average and raises affordability issues, as steep rent increases and limited workforce availability present challenges for renters. Further, Palm Beach is expected to see record-level apartment deliveries for the remainder of 2023 and into 2024. As the tourism sector recovers, demand for more affordable units is predicted to increase. However, the anticipation of rising interest rates and a slower economy may continue to impact transaction volume throughout 2023 and 2024.



  • The sales volume for the past 12 months stands at $853 million.
  • New developments are focusing on areas with growing access to neighborhood amenities, such as proximity to the beach and updated retail establishments.
  • Palm Beach is ranked sixth in terms of supply pipeline across all Florida markets.
  • West Palm Beach has been a central target of investor demand, accounting for over 20% of transaction volume since 2020.


Rents | Vacancy | Construction

Approximately 70% of the units under construction in Palm Beach are expected to be Class A Luxury units.


Rent growth has increased by 0.3% in the past year to the current effective rent rate of $2,381. Rent premiums have increased from around 30% in 2020 to over 40% currently. The rental market dynamics have shifted, with Class B and C units now outperforming Class A properties in terms of rent gains. Vacancies have risen from historic lows of 3.8% in Q3 of 2021 to 8.4% in Q3 2023. Most of the recent and upcoming vacancy expansion is anticipated to affect the luxury market segment. Construction starts in the Palm Beach area have been robust, totaling over 600 units in Q2 2023. A significant majority of the started projects are still under construction, with 7,563 units still in progress. The West Palm Beach submarket represents over 30% of Palm Beach’s under-construction activity. The concentration of ongoing construction is notable, with around 50% of the units being built within a five-mile radius of Downtown West Palm Beach.



The majority of activity in the market involves Class A assets, with over $4 billion in luxury properties trading hands since 2020, representing more than 65% of transaction volume.


Palm Beach’s multifamily market has attracted significant investor interest due to strong tenant demand and substantial rent gains since 2020. While transaction activity has slowed, H1 2023 saw over $330 million in volume. Annualized activity remains high, with 67 property trades totaling $770 million over the past year. Palm Beach’s multifamily trades were at a 33% premium above the U.S. average in Q2 2023. The average price per unit grew by 30% since 2020, surpassing $320,000 per unit, double the U.S. growth rate. Trades are focused on Class A properties built or renovated in the last 20 years.


Palm Beach by the Numbers in the Last 12 Months

Source: CoStar Group 

  • Units Under Construction: 7,563
  • Units Delivered: 2,658
  • Vacancy Rate % Change (YOY): 1.4%
  • Asking Rent Growth (YOY): 0.3%
  • Average Price Per Unit: $320,000
  • Sales Volume: $853M

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