Florida’s multifamily housing market is experiencing unprecedented growth. Looking at just the South Florida market alone, projections indicate that nearly 24,000 units will be delivered by year-end; the highest total recorded with data dating back to 2002.
This demand surge has been seen right across the state and is driven by a combination of factors, including significant population growth, expanding economic opportunities, and rising housing costs in Florida’s urban hubs.
Affordable housing remains a pressing issue, particularly for the young adults and professionals migrating to the state. And as a result, multifamily housing demand is expected to continue its upward trajectory into 2025.
With increasing pressure on the housing market, multifamily units have become an attractive solution for both residents seeking affordable options and investors looking for high returns. Areas experiencing job growth and population booms present especially strong opportunities for developers.
In this blog, we’ll delve into the key factors driving demand for multifamily housing and explore how real estate professionals can effectively address this need. We’ll also highlight how access to zoning and future land use data can streamline development efforts and discuss how LandTech’s solutions can help professionals thrive in this competitive landscape.
What’s driving the demand for multifamily housing in Florida?
From population growth and migration to economic opportunities and affordability challenges there are several key factors that are driving the demand for multifamily and workforce housing in Florida. Below, we’ll take a look at the driving factors for the growth in demand for multifamily housing.
Economic opportunities
Florida’s private sector job growth continues to outpace the national average, reflecting the state’s robust economic momentum. In 2024, Florida recorded a 2.2% increase in private sector employment, compared to the national growth rate of 1.6%. This trend, which began during the COVID-19 pandemic in 2020, highlights the state’s resilience and ability to attract and retain jobs. Key industries driving this growth include construction, education, and health services.
The state’s diversified economy—spanning technology, healthcare, tourism, and beyond—has become a significant draw for job seekers. Cities like Miami, Orlando, and Tampa have emerged as employment hubs, offering substantial opportunities that, in turn, fuel demand for multifamily housing. As companies expand their operations in Florida, the need for accessible, quality housing options to accommodate the growing workforce becomes increasingly critical.
Looking ahead, Florida’s economy is forecasted to grow by 3.0% in 2024, well above the projected national growth rate of 1.4%. This economic strength, coupled with longstanding attractions such as low taxes and mild winters, continues to make the state a magnet for new residents. These factors collectively ensure another solid year of population growth and underscore the ongoing need for multifamily housing developments to meet demand.
Population growth and migration
Speaking of population growth, Florida’s inbound migration was so high that the state’s population passed 23 million people for the first time ever this year, according to the state’s Demographic Estimating Conference, which was held in July this year.
The DEC also announced that rapid population growth is expected to continue for the foreseeable future, with Florida set to see well over 300,000 people move in annually through 2026 - just under 900 people per day on average. By the DEC estimates, Florida could reach 24 million residents by 2027 and 26 million residents by 2036.
The economic opportunities presented in the state (and additional benefits such as no individual income taxes and plenty of sunshine year round) will continue to drive migration and population growth for the foreseeable future. And with these figures rising, the market should see further demand for affordable and flexible housing opportunities, such as rental apartments and condominiums.
Affordability challenges
Florida’s appeal of lower taxes and a desirable climate has long made it a popular destination for new residents. However, the rising cost of single-family homes has placed homeownership out of reach for many families and individuals, driving them toward multifamily housing as a more affordable alternative.
Home prices have surged across the state due to high demand, limited inventory, and an influx of out-of-state buyers. This trend is particularly pronounced in urban and coastal hotspots like Miami, Tampa, and Orlando.
Compounding the issue, rising interest rates have significantly increased the cost of borrowing. This has particularly impacted first-time buyers, many of whom now find renting to be a more viable option. With these economic pressures, multifamily housing is not just filling a need—it is becoming a cornerstone of Florida’s housing market, offering flexibility and affordability to a growing population.
This growing demand for multifamily housing presents a significant opportunity for real estate developers to meet market needs and achieve strong returns. However, capitalizing on this potential requires the right data. Without it, what might seem like a promising opportunity could quickly turn into a missed one.
In the next section, we’ll explore the essential data developers need to identify areas with high demand for multifamily housing and how LandTech provides the tools to access and leverage this information effectively.
How zoning and future land use data can address housing needs
Understanding zoning and future land use (FLU) designations is essential for developers aiming to meet housing demand effectively.
These datasets reveal:
- Development Opportunities: Zoning data outlines areas pre-approved for multifamily housing, saving developers time in navigating regulatory hurdles.
- Anticipated Growth Areas: Future land use data identifies regions poised for expansion or rezoning, enabling strategic planning to align with community growth projections.
- Risk Mitigation: Access to this data minimizes the risks associated with investing in areas prone to restrictions or delayed approvals.
With these insights, developers can pinpoint optimal locations for projects, ensuring they address community needs while maximizing profitability.
How LandTech can help
LandTech’s comprehensive platform empowers property professionals with access to zoning, FLU data, and more. Here are just a few of the benefits of utilizing a property data tool like LandTech:
- Streamlined data access: We aggregate key datasets, like zoning, ownership, FLU, and more, simplifying the research and due diligence process for real estate professionals.
- Strategic insights: With tools like LandTech, users can analyze growth trends and zoning classifications to identify lucrative opportunities.
- Enhanced collaboration: Our solutions foster seamless communication among stakeholders, accelerating project timelines. You can save sites directly from your search and organize them by stage, and keep up to date with any changes, all in one place.
LandTech equips you with the tools to make data-driven decisions, ensuring your projects are both compliant and successful.
Ready to get started?
Florida’s multifamily housing demand presents a significant opportunity for developers. By leveraging zoning and FLU data, you can navigate the complexities of this dynamic market and stay ahead of the competition.
Ready to see our solutions in action? Book a meeting with a LandTech expert today by clicking below.
