Rent Growth Picks Up Pace
Orlando may face economic challenges, but the metro’s fundamentals suggest a balanced market, according to the latest Yardi Matrix Orlando multifamily market report. Advertised asking rents were up 0.3% on a trailing three-month basis, to $1,789, mirroring national trends, as reported in the national multifamily outlook. Meanwhile, the occupancy rate in stabilized properties decreased 80 basis points year-over-year, to 94.1%, with working-class rentals recording a sharper decline.
The employment market in Orlando expanded by 2.4% 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% 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% 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.
Read the full Yardi Matrix Orlando Multifamily Market Report: July 2024
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