Tourism’s Power a Draw in Orlando
The city's multifamily market is thriving due to healthy tourism, above-trend population gains and a rapidly growing economy.
By Robert Demeter
Orlando’s multifamily market is thriving due to healthy tourism, above-trend population gains and a rapidly growing economy. An expanding young workforce—drawn by the area’s high quality of life and live-work-play options—is fueling demand. As of June, the average rent was $1,222, trailing the U.S. average.
The metro is one of the fastest-growing employment markets in the country, adding 54,500 jobs year-over-year through May. Hospitality remains the city’s main economic pillar, with professional and business services and trade and transportation also adding a significant number of jobs. The three sectors generated almost 50 percent of the metro’s job growth. Construction is also booming, as a high number of infrastructure projects are underway, including the $2.3 billion overhaul of Interstate 4 and a new $1.3 billion train station.
New supply is growing fast to meet demand. More than 5,000 apartment units are slated for delivery by year-end, and 37,000 units are in the pipeline. However, with limited completions in the first half of the year, demand remains ahead of supply. There is also a shortage of affordable units, a growing concern for lower-paid workers, which represent the bulk of the workforce. As overall growth will continue to foster demand for the rest of 2017, Yardi Matrix expects a rent increase of 4.2 percentby year-end.
Read the full Yardi Matrix report.