Miami Multifamily Developers Hit Pause, List Sites for Sale

A wave of Miami-area apartment projects is shifting course as developers who once planned to build are now opting to sell their sites.

Evolve Companies is among them. The North Carolina-based firm unveiled plans in 2022 for two apartment buildings in Wynwood Norte — one with 141 units, the other with 105. Despite securing approvals earlier this year, Evolve has listed both sites for sale, seeking $14 million and $12 million.

They aren’t alone. Across South Florida, developers are quietly testing the market for multifamily land as high interest rates, rising construction costs, and an oversupply of new rentals weigh on returns.

Broker Tony Arellano summed it up: “The market cycle for new construction multifamily is ending.”

Over the last four years, a flood of new luxury apartments delivered in Miami, Fort Lauderdale, and West Palm Beach has softened demand and pushed rents down. Wynwood alone has gone from two high-rises before COVID to more than 30 today. Zumper reports one-bedroom rents in Wynwood have fallen 7% year-over-year, averaging $3,049 this month.

Not all sellers are bowing to market pressures, however. Some specialize in assembling and entitling land before flipping to builders. Others are leveraging Florida’s Live Local Act, which allows denser projects if 40% of units are set aside as affordable housing, to enhance property values before selling.

Still, many owners face mounting challenges. Some bought land at peak prices with heavy debt, leaving them exposed as values reset.

“Everyone is a net seller right now,” said broker Miguel Pinto, noting even sites not formally on the market are available for the right offer.

Recent listings underscore this trend:

• Clara Homes, which planned a 147-unit tower in Wynwood, put its site up for $10.9 million, despite previously promoting the project.
• K2 Capital Group listed a south Miami-Dade parcel where it had proposed a 206-unit building, asking $6.3 million — up from its $4 million purchase last year.

Some developers have even pivoted from rental apartments to condominiums, though brokers caution that not every site is suited for condo conversions.

Even as many retreat, others see opportunity. Cushman & Wakefield’s Chris Lentz argues that lower construction costs, stabilizing interest rates, and banks reentering the market could spark renewed activity. A recent example: Swire Properties sold a downtown Miami development site to Kerzner International for $45 million.

For now, however, the mood is cautious. Developers who expected a seamless run of rent growth and cheap financing are recalibrating — or cashing out.

As Pinto put it: “They bought land, thought they would build it, [and] the world turned on them. When the tide goes out, we see who is swimming naked.”