The Florida multifamily market emerged as a prime beneficiary during the pandemic, as the migration reshuffle of U.S. residents spurred unprecedented growth in rental rates and property prices from 2020 through early 2022 in Florida. Yet, these once-celebrated Florida markets are now confronting a palpable shift. In a rush to leverage historically low interest rates, developers have launched a wave of new projects, fueled by the surge of in-migration to the Sunshine State. However, this development boom has given way to caution as the Federal Reserve’s aggressive interest rate hikes, aimed at curbing inflation, cooled apartment demand just as this deluge of new units is poised to enter the market. This convergence of factors has compelled stakeholders to grapple with the potential impact of an oversupply of new units. Nonetheless, the long-term prospects for Florida’s multifamily market remain bright despite these short-term hurdles. But a closer look at market-level data indicates a divergence within the state: some of the smaller, less frequented markets are displaying signs of recovery, while larger markets continue to search for market equilibrium.