Orlando Multifamily Report – July 2024
Despite strong supply, most fundamentals are improving.
Orlando may face economic challenges, but the metro’s fundamentals suggest a balanced market. Advertised asking rents were up 0.3 percent on a trailing three-month basis, to $1,789, mirroring national trends. Meanwhile, the occupancy rate in stabilized properties decreased 80 basis points year-over-year, to 94.1 percent, with working-class rentals recording a sharper decline.
The employment market in Orlando expanded by 2.4 percent in the 12 months ending in March, with the addition of 32,300 net jobs. The metro’s growth rate was 100 basis points above the national average. Education and health services led gains, with 9,500 positions. Orlando’s jobless figure stood at 3.2 percent as of April, 70 basis points below the U.S. rate. One of Orlando’s largest projects is Disney’s expansion plan, which encompasses a 17,000-acre project outside the district’s current property. This $17 billion investment is slated for completion over the next 20 years, with $8 billion allocated for spending in the next decade alone.
A total of 4,917 units, or 1.8 percent of existing stock, came online this year through May, double the national pace of completions. However, construction starts have declined since the beginning of this year. Transaction activity remained slow, with just $224 million in assets changing hands, a far cry from the more than $6 billion recorded in Orlando in 2021 and 2022.
