Miami
Plenty of capital. Almost none of it chasing workforce housing.
Miami: photography pending
Constraint Diagnosis
Report in research. Miami has no shortage of capital willing to build; it has a shortage of capital willing to build anything but the highest rent tier the market will bear, leaving the workforce and middle-income segment structurally underfunded relative to demand.
Sources
Where these numbers come from
Every input behind this report's pro forma, and whether it's been checked against a real source yet.
| Input | Value | Source | Year | Link |
|---|---|---|---|---|
| Land cost | $2,300,000 | PENDING | N/A | N/A |
| Hard cost per unit | $245,000 | PENDING | N/A | N/A |
| Soft costs | 19.0% | PENDING | N/A | N/A |
| Permit timeline | 7 mo | PENDING | N/A | N/A |
| Construction timeline | 18 mo | PENDING | N/A | N/A |
| Construction loan rate | 8.25% | PENDING | N/A | N/A |
| Monthly rent per unit | $1,950 | PENDING | N/A | N/A |
| Vacancy & credit loss | 5.0% | PENDING | N/A | N/A |
| Operating expense ratio | 39.0% | PENDING | N/A | N/A |
| Exit cap rate | 5.50% | PENDING | N/A | N/A |
| Required spread over exit cap (drives required return = exit cap + spread) | 1.25% | Industry convention for ground-up multifamily; developers in 2026 generally require 6%+ development yield with a minimum 125-150bps spread over exit cap. Practitioner range 125-175bps, with urban-core deals occasionally below 100bps. CBRE notes the historical premium was approximately 200bps and has compressed. This model uses the low end of that range (125bps), matching the developer_spread input in R-01's sourced Washington, D.C. analysis. See also: https://dancap.ca/2025-outlook-real-estate/ | 2026 | View source |