Orlando Multifamily Report – December 2024
This Sun Belt market has a classic case of short-term oversupply.
After a steady performance earlier this year, Orlando’s rent growth turned negative again, impacted by high delivery volumes and current economic conditions. Average advertised asking rents were down 0.5 percent on a trailing three-month basis, to $1,767, while U.S. rates dipped 10 basis points. The occupancy rate in stabilized properties decreased 10 basis points year-over-year, to 94.3 percent, while Renter-by- Necessity occupancy recorded a steeper decline of 40 basis points.
Orlando’s employment market expanded 1.6 percent as of August, 20 basis points above the national average. Education and health services led gains with 7,500 jobs, but leisure and hospitality, one of metro’s major economic drivers, added only 3,500 positions. The metro’s unemployment figure stood at 3.4 percent as of September, 70 basis points below the U.S. rate, according to data from the Bureau of Labor Statistics. Orlando International Airport is set to benefit from an upcoming renovation and expansion plan. Approximately $1 billion in funding has already been approved for the project.
A total of 10,611 units, or 3.9 percent of existing stock, came online this year through October, 70 basis points above the national rate of completions. Meanwhile, investment volume reached $1.3 billion, similar to the last year’s low sales total.
