average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 3,777
QUARTERLY COMPLETIONS
YTD: 4,850
Average Monthly Mortgage Payment
Average Monthly Rent
The Orlando apartment market has consistently maintained strong occupancy rates, averaging 96% over the past five years. However, over the past year, the market has experienced a decrease in occupancy, culminating in an average rate of 94.6% in the second quarter of this year. In the second quarter of 2023, North Lake County and University submarkets stood out for their strong occupancy rates, while Central Orlando and Southwest Orlando posted somewhat lower figures.
Looking ahead, it’s projected that occupancy rates in the Orlando market may see a slight decline in the coming year, mainly due to an imbalance between new supply and demand. However, once the incoming wave of new supply is effectively absorbed, the Orlando market is expected to resume its robust growth patterns.
Mirroring national trends, rent price growth in Orlando has slowed following record increases in the previous year. As of Q2 2023, new lease rents recorded year-over-year growth of 1.9%, a figure that falls below the market’s five-year average of 7.4%. Despite this deceleration, Orlando’s rental price performance remains consistent with many other sunbelt markets. With an average monthly rental rate of $1,824, Orlando offers a more affordable living option compared to South Florida, enhancing its attractiveness for individuals migrating to the state.
In terms of property classes, Class C units led with a healthy gain of 3.7%. Class A units followed closely with a 2.7% increase, while Class B units trailed at 0.8%. Two submarkets, North Lake County and Northwest Orlando, stood out with robust year-over-year rent gains of 6.8% and 5.1% respectively by the end of Q2 2023.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Central Orlando | 93.6% | -2.4% | $2,169 | 3.7% |
| East Orlando | 95.5% | -1.8% | $1,698 | 3.8% |
| Southwest Orlando | 93.7% | -3.4% | $1,637 | 0.9% |
| West Orlando | 94.1% | -3.3% | $1,816 | 0.7% |
| Northwest Orlando | 94.5% | -2.4% | $1,684 | 5.1% |
| Winter Park/Maitland | 94.8% | -2.3% | $1,758 | 4.8% |
| Altamonte Springs/Apopka | 94.1% | -2.8% | $1,751 | 2.0% |
| Sanford/Lake Mary | 94.5% | -1.7% | $1,757 | -0.7% |
| Casselberry/Winter Springs/Oviedo | 94.2% | -2.6% | $1,782 | 1.7% |
| University | 95.8% | -2.1% | $1,716 | 2.4% |
| East Orange County | 94.8% | -2.2% | $1,951 | -1.7% |
| South Orange County | 94.7% | -2.3% | $1,995 | 1.7% |
| Kissimmee/Osceola County | 94.9% | -2.5% | $1,811 | 3.3% |
| Ocoee/Winter Garden/Clermont | 94.9% | -3.1% | $1,907 | -0.3% |
| North Lake County | 97.3% | -1.8% | $1,423 | 6.8% |
| Orlando-Kissimmee-Sanford, FL | 94.6% | -2.5% | $1,824 | 1.9% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
Despite facing hurdles like increasing interest rates and challenges in maintaining occupancy, Central Florida’s multifamily property market continues to pique investor interest. Although the annual transaction volume has notably decelerated compared to 2022, the first half of the year has still witnessed vigorous activity. As reported by Real Capital Analytics, around $666.1 million was transacted across 12 sales, placing Orlando towards the of top markets in terms of total sales volume. The average price per unit in these transactions saw a 16.0% year-over-year increase, hitting $282,600, further underscoring the market’s resilience and appeal to investors.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual conventional MF transaction $2.5M +
In the second quarter of 2023, the Orlando-Kissimmee-Sanford metro area experienced a 4.9% GDP expansion with a net gain of 50,300 jobs, representing a 3.6% increase in employment. As a result, the unemployment rate in May dropped by 0.1 point compared to the previous year, reaching 2.7%, which is lower than the national average of 3.4%. The Leisure/Hospitality Services sector saw the most significant job gains, with 28,800 positions added, reflecting an 11% expansion. Additionally, the Education/Health Services sector reported a 4.2% increase, adding 7,200 jobs. Despite the pandemic’s initial job losses, the current employment base in the Orlando-Kissimmee-Sanford area is approximately 6% higher than the pre-pandemic level in February 2020, amounting to around 86,800 jobs.
May Annual Jobs Created
May 23 Employment growth
May 23 Unemployment rate
3.4% us may rate
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 28,800 | 11.0% |
| Education and health services | 7,200 | 4.2% |
| Trade, transportation, and utilities | 6,200 | 2.4% |
| Financial activities | 3,100 | 3.5% |
| Government | 2,800 | 2.3% |
| Professional and business services | 2,400 | 0.9% |
| Other services | 1,000 | 2.3% |
| Manufacturing | 700 | 1.3% |
| Mining and logging | 0 | 0.0% |
| Information | (300) | -1.1% |
| Construction | (1,600) | -1.8% |
Investor demand for the Orlando market remains strong, thanks to the region’s robust in-migration and economic growth. As of Q2 2023, construction was underway on more than 24,533 housing units, with around 16,477 units expected to be completed over the next four quarters. Despite the significant pipeline of new construction, there is no cause for alarm. Given the strength of Orlando’s economy and its capacity to drive household formation, these new units are projected to be absorbed over time. Even though the market is facing supply headwinds in the short-term, Orlando continues to showcase solid performance when benchmarked against national standards.
