B
oca Raton, a city long known for its gated communities and retiree-friendly condos, is experiencing an unexpected rental boom. Major developers from Miami are flocking to the Palm Beach County city with plans for high-density living projects.

    Over 7,600 new apartment units are in the works, more than four times what's been delivered since 2022, according to Yardi Matrix data. The old Office Depot campus is being transformed into housing, and proposals for large-scale rental communities are popping up on business parks, near the Tri-Rail Station, and even next to the new City Hall.

    Investors believe that people and businesses will continue to migrate to Palm Beach County, pricing out employees who need affordable housing options. Developers like Terra's David Martin see an opportunity to provide "workforce housing" with amenities like pools and yoga studios, making it attractive for young professionals.

    Terra won a competition to redevelop the City Hall complex with a 2.5 million-square-foot plan that includes a hotel, office space, and 1,129 rental units. Nearby, 13th Floor Investments is building a 340-unit apartment complex next to the Tri-Rail Station, featuring affordable and workforce housing.

    A partnership between Related Group, BH Group, and PEBB Enterprises plans to build 500 apartments on Office Depot's former corporate campus, along with retail space and an Equinox fitness center. The demand for rentals is driven by the COVID migration southward, which has sent renter-occupied units in Boca Raton rising since 2019.

    Rents have held steady, suggesting that development has met but not exceeded demand. Housing economist Ken Johnson notes that more roofs are needed to address the housing crisis in Palm Beach County.