average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 4,909
QUARTERLY COMPLETIONS
YTD: 7,527
Average Monthly Mortgage Payment
Average Monthly Rent
* The Average mortgage payment is based off a median home sales price of $435,000 as reported by the National Association of Realtors as of Aug 2023.
The Orlando apartment market has shown consistent steadiness in occupancy rates, averaging 95.7% over the past five years. Nevertheless, a minor decline was observed over the last year, resulting in an average occupancy rate of 94.1% for Q3 2023. Within this landscape, the North Lake County and University submarkets stood out with robust occupancy rates of 96.6% and 95.1%, respectively. Conversely, the Northwest Orlando and Altamonte Springs/Apopka submarkets lagged slightly, posting occupancy rates ranging from 93.2% to 93.4%.
Looking forward, the Orlando market is set for a rebound. Projections indicate that occupancy rates could see improvements in the coming year, particularly as the anticipated new supply is expected to be fully absorbed. This outlook further cements Orlando’s reputation as a robust and resilient housing market.
As of Q3 2023, new lease rents have seen a 2.6% decline year-over-year, falling below the market’s five-year average growth rate of 6.9%. Despite this, Orlando remains on par with other Sunbelt markets, sustaining an average monthly rental rate of $1,802. This positions the city as a more affordable living option compared to South Florida, thereby attracting individuals relocating to the state.
In terms of asset classes, Class B units saw the most significant annual rent decrease of 3.2%. Class A units were close behind with a 2.4% reduction, while Class C units experienced a milder drop of 1.9%. Within the submarkets, North Lake County was notable for its robust year-over-year rent gains of 6.2%, even as other submarkets recorded negative rental price trends.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Altamonte Springs/Apopka | 93.4% | -2.4% | $1,716 | -3.4% |
| Casselberry/Winter Springs/Oviedo | 94.1% | -1.6% | $1,792 | -3.0% |
| Central Orlando | 93.2% | -0.3% | $2,127 | -1.7% |
| East Orange County | 94.4% | -1.4% | $1,926 | -4.7% |
| East Orlando | 94.4% | -1.9% | $1,676 | -1.1% |
| Kissimmee/Osceola County | 93.6% | -2.5% | $1,774 | -3.6% |
| North Lake County | 96.6% | -2.0% | $1,460 | 6.2% |
| Northwest Orlando | 93.2% | -1.8% | $1,663 | -1.3% |
| Ocoee/Winter Garden/Clermont | 94.7% | -1.9% | $1,888 | -3.5% |
| Sanford/Lake Mary | 94.6% | -0.1% | $1,746 | -2.2% |
| South Orange County | 93.9% | -1.7% | $1,975 | -3.5% |
| Southwest Orlando | 93.8% | -1.9% | $1,620 | -2.1% |
| University | 95.1% | -1.3% | $1,696 | -0.4% |
| West Orlando | 94.4% | -2.1% | $1,768 | -3.8% |
| Winter Park/Maitland | 94.3% | -1.8% | $1,742 | -0.3% |
| Orlando-Kissimmee-Sanford, FL | 94.1% | -1.7% | $1,802 | -2.6% |
Number of Units Under Construction
Number of Units UC Delivering In the Next 4 Quarters
| Submarket | Units Under Construction | % of Total UC | Units UC Delivering In the Next 4 Quarters |
|---|---|---|---|
| Altamonte Springs/Apopka | 1,845 | 8% | 1,690 |
| Casselberry/Winter Springs/Oviedo | 350 | 2% | 350 |
| Central Orlando | 975 | 4% | 735 |
| East Orange County | 962 | 4% | 757 |
| East Orlando | 1,141 | 5% | 817 |
| Kissimmee/Osceola County | 4,950 | 22% | 2,902 |
| North Lake County | 382 | 2% | 112 |
| Northwest Orlando | 1,345 | 6% | 507 |
| Ocoee/Winter Garden/Clermont | 3,428 | 15% | 2,798 |
| Sanford/Lake Mary | 1,892 | 8% | 1,144 |
| South Orange County | 4,536 | 20% | 3,451 |
| Southwest Orlando | 0 | 0% | 0 |
| University | 177 | 1% | 177 |
| West Orlando | 91 | 0% | 91 |
| Winter Park/Maitland | 247 | 1% | 247 |
Despite grappling with challenges such as rising interest rates and the complexities of maintaining occupancy, the multifamily property market in Central Florida continues to capture the attention of investors. While the annual transaction volume has experienced a noticeable slowdown in comparison to 2022, the first three quarters of the year have still been marked by healthy activity. According to Real Capital Analytics, approximately $998.1 million changed hands in 17 sales, positioning Orlando among the top markets in terms of total sales volume. Notably, the average price per unit in these transactions recorded a 8.0% year-over-year increase, reaching $281,200, further highlighting the market’s durability and its attractiveness to investors.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual conventional MF transaction $2.5M +
In the third quarter of 2023, the Orlando-Kissimmee-Sanford metropolitan area experienced a robust economic upturn, witnessing a 4.9% increase in its GDP and the addition of 38,400 jobs, reflecting a 2.7% boost in overall employment. This positive trend resulted in a notable drop in the August unemployment rate, declining by 0.1 percentage point from the previous year to reach an impressive 3.1%, outperforming the national average of 3.4%. Key sectors such as Leisure/Hospitality Services and Education/Health Services drove this economic resurgence, with the former contributing 20,300 new jobs, indicating a substantial 7.5% annual growth, while the latter also experienced a parallel 7.5% expansion, adding 13,000 jobs to the region. Notably, despite the initial setbacks caused by the pandemic, the Orlando-Kissimmee-Sanford area’s current employment base has rebounded remarkably, surpassing pre-pandemic levels by approximately 8.6%, equivalent to a gain of around 125,200 jobs since February 2020.
August Annual Jobs Created
August 2023 Employment growth
August 2023 Unemployment rate
3.9% us August rate
| Sector | Change from Aug 2022 to Aug 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 20,300 | 7.5% |
| Education and health services | 13,000 | 7.5% |
| Trade, transportation, and utilities | 7,500 | 2.9% |
| Government | 2,300 | 1.8% |
| Financial activities | 2,100 | 2.3% |
| Manufacturing | 1,300 | 2.5% |
| Other services | 800 | 1.8% |
| Information | 400 | 1.5% |
| Mining and logging | 0 | 0.0% |
| Construction | (2,700) | -3.1% |
| Professional and business services | (6,600) | -2.4% |
Orlando stands out as a more affordable option when compared to South Florida, making it an appealing choice for newcomers to the state. In comparison to Miami, FL, Orlando offers reduced expenses across various categories, including groceries (9.9%), utilities (12.8%), transportation (7.8%), and healthcare (3.0%). Moreover, housing costs in Orlando are significantly lower than in Miami, with a 27.6% difference. The median home price in Orlando currently stands at $435,000 (up 1.2% YoY). Furthermore, the average monthly mortgage payment of $3,308 is double the average rent of $1,802, making Orlando an attractive destination for renters as well.
100.9
$3,308
107.2
89.1
96.3
$327,500
The “Cost of Living” index score provides a comparative assessment of the relative expense involved in maintaining a standard of living in a specific area, benchmarked against a national index score of 100.
Investor interest in the Orlando market remains robust, primarily due to the area’s impressive population growth and economic expansion. As of the third quarter of 2023, construction was in progress for over 22,300 housing units, with approximately 15,778 units slated for completion in the coming four quarters. Despite this substantial influx of new construction, there is no need for concern. Given Orlando’s strong economic foundation and its ability to stimulate household formation, these new units are anticipated to be fully occupied by next autumn, as the projected demand is set to surpass the available supply. Despite facing temporary supply challenges, Orlando continues to demonstrate resilient performance when compared to national standards.
