Orlando Leads US Rent Growth
Unprecedented population and employment growth add up to a thriving multifamily market. The metro gained almost 47,000 jobs in the 12 months ending in May.
With tourism and hospitality as its main economic drivers and backed by unprecedented population and employment growth, Orlando’s multifamily market is thriving.
The metro added almost 47,000 jobs in the 12 months ending in May, keeping Orlando well above the U.S. average. With a record-breaking number of visitors last year, employment gains were highest in leisure and hospitality, the sector gaining 10,600 jobs. Orlando’s year-round temperate weather, coupled with no state income taxes, continues to entice both domestic and foreign investors. A $2.1 billion airport expansion is underway, with more than 500 workers on site daily. The new terminal is scheduled for completion in 2021 and will increase the capacity of the state’s busiest airport to more than 50 million yearly passengers.
As job growth is concentrated in lower-paying employment sectors, an increasing number of households are seeking more affordable housing options. And with developers focused on upscale projects, renters are bound to feel the pressure. As of July, almost 90 percent of the 12,300 units underway in the metro fall within the Lifestyle segment. Moreover, with a 6.9 percent year-over-year increase in rates, Orlando is leading the nation in rent growth. We expect the average rent to increase 5.1 percent in 2018.