Orlando Multifamily Report – March 2024

Rent growth has been sliding in recent years.

Orlando rent evolution, click to enlarge
Orlando rent evolution, click to enlarge

Orlando rent growth has been steadily softening since late 2021, recording negative movement for nearly all of 2023 and into this year. Rates contracted 0.5 percent on a trailing three-month basis through January, to $1,758, while national averages were down only 0.2 percent, to $1,710. On a year-over-year basis, rent deceleration in Central Florida was among the steepest in the country, with rates declining 3.6 percent, second only to Austin (-6.0 percent). However, this isn’t surprising, considering developers last year delivered the second-largest annual volume since 2016.

Orlando sales volume and number of properties sold, click to enlarge
Orlando sales volume and number of properties sold, click to enlarge

The metro’s employment market expanded 2.4 percent in the 12 months ending in November but was still 20 basis points above the U.S. figure. The leisure and hospitality sector, Orlando’s economic backbone, could get a major boost from the expansion planned at Orlando International Airport. The Greater Orlando Aviation Authority intends to add 16 to 24 gates to the recently completed Terminal C, as passenger traffic continues to rebound. According to its latest activity report, the airport saw a 15.1 percent increase in traffic in 2023 compared to 2022.

Orlando. Photo by Wirestock/iStockphoto.com
Orlando. Photo by Wirestock/iStockphoto.com

With 28,864 units underway, Orlando’s development pipeline remained sturdy. After the 11,960 units that came online last year, another 654 units were delivered in January. However, construction activity will likely cool until lending conditions improve.

Read the full Yardi Matrix report.

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