Airbnb's Sweet Deals With Florida Developers

06.12.2023 - 04:27 / skift.com / Srividya Kalyanaraman

Airbnb has partnered with Sentral Wynwood in Miami, allowing apartment tenants to rent out their units for up to 75 days. When tenants choose to list their apartments, Airbnb will handle pricing, security, access for guests, and cleaning.

A 680-square foot deluxe loft apartment, furnished and ready to move in, starts at around $3,059 in rent. If tenants rent out their units for six nights a month, they could potentially earn about $636 for those nights, although actual earnings would vary. Sentral Wynwood offers fully furnished apartments for flexible rental durations, including nightly, quarterly, and annually, reported. 

In February this year, Airbnb signed a deal with National developer PMG, Miami-based Lion Development Group, and Marc Roberts Companies for a 44-story tower that will offer 659 luxury residences in Miami’s District 11 as the first managed luxury condo tower to grant owners the option to host 365 days per year on Airbnb. Every unit will be designed for Airbnb hosting, granting owners independence and assurance over security, reported.

Earlier this month, Skift spoke to Edgardo Defortuna, CEO of Fortune International Group, another Florida-based developer, which is currently developing two STR projects in Miami. They would deliver 794 units with prices starting at $400,000 and $859,000 to be sold to individual homeowners who have the option to rent them out, and should they choose to do so, there is already a property management company that would handle the rest. 

Meanwhile, affordable housing still remains a challenge in the state with apartment complexes being built on agricultural reserves and university campuses in Florida as “essential housing” to accommodate workers and staff. 

The South Florida Business Journal reported that religious and nonprofit organizations are selling land in South Florida to developers to raise money. Since there are few vacant parcels left in South Florida, developers sometimes have to turn to land owned by institutions to find property to build on.

But as more inventory gets added to the market, occupancy dips. noted that the thriving apartment market has led to increased construction activity, resulting in a decrease in overall occupancy rates across South Florida from 97.1% to 95.1% in the span of a year. This trend is expected to persist, with projections indicating the delivery of 19,056 units in 2023 and 24,926 units in 2024. 

The demand for South Florida apartments is driven by a strong job market and the ongoing issue of unaffordable housing. Despite rising mortgage rates, South Florida’s home prices continue to rise. And as a result, homeownership is challenged. A separate report by CBRE indicated a sharp decline in multifamily investment