The State of the Multifamily Market in Central and South Florida in 2025

Buyer’s Market or Seller’s Market?

As of March 11, 2025, the multifamily housing market in Central and South Florida is undergoing a notable transformation, reflecting broader trends in the state’s real estate landscape. With population growth, economic shifts, and changing buyer behaviors, the question of whether this is a buyer’s or seller’s market is complex but increasingly leans toward favoring buyers. Let’s dive into the current state of the multifamily market in these regions and what it means for investors, buyers, and sellers.

Central Florida: A Shift Toward Balance

Central Florida, encompassing cities like Orlando, Tampa, and Lakeland, has long been a hub for multifamily housing demand, driven by tourism, job growth, and an influx of new residents. In 2024, the region saw a significant increase in housing inventory, with Orlando reaching a six-month supply of homes—the first time in 14 years—indicating a move toward a balanced market. For multifamily properties specifically, demand has softened slightly from its pandemic peak. Vacancy rates in Orlando, for instance, hit 10.9% by late 2023 and are expected to climb further into 2025 as new construction floods the market with thousands of units.

This surge in supply is a game-changer. With over 12,400 new multifamily units projected for delivery in Orlando by the end of 2023, and more in the pipeline for 2025, the market is tilting toward buyers. Rent growth has slowed, and competition among renters may tighten, but the sheer volume of available units gives buyers and investors more negotiating power. Sellers, particularly those with older multifamily complexes, may face challenges as sales of such properties have declined statewide, reflecting buyer hesitation amid high interest rates and rising maintenance costs. In short, Central Florida’s multifamily market is transitioning from a seller-dominated space to one where buyers hold the upper hand.

South Florida: Cooling Heat, Rising Inventory

South Florida, including Miami-Dade, Broward, and Palm Beach counties, has historically been a seller’s paradise, fueled by international buyers, luxury demand, and a robust job market. However, 2025 is revealing cracks in that dominance. Housing supply has spiked, with a 40.1% increase in inventory statewide by mid-2024, and South Florida reflecting similar trends. Posts on X note a 7.2-month supply in the region—the highest in Florida—alongside a 5.24% drop in home sales from 2023 to 2024. For multifamily properties, the story is even more pronounced: older condos (30+ years) dominate listings, comprising 88% of available units in Q2 2024, yet buyer interest is waning.

This shift is driven by several factors: high insurance costs, new condo safety regulations, and elevated interest rates (hovering around 6.3% per NAR predictions) are deterring buyers. Meanwhile, median days on market have stretched to 69, signaling a cooling demand. While luxury multifamily properties in Miami still attract high-net-worth individuals, the broader market is softening. Sellers may need to adjust pricing or offer incentives, as the days of rapid sales and bidding wars fade. Buyers, on the other hand, benefit from more options and less pressure, marking a clear shift toward a buyer’s market.

Buyer’s Market or Seller’s Market?

Across Central and South Florida, the multifamily market in 2025 leans toward buyers. Increased inventory, slower sales, and moderating price growth give purchasers leverage, while sellers face stiffer competition and longer listing times. However, regional nuances—like Miami’s luxury resilience—mean sellers in specific niches may still hold some sway. For now, the data suggests opportunity for buyers willing to navigate this evolving landscape.