Home to the “happiest place on earth” a.k.a. Disney World, Orlando has always ranked well for the rental market within the state of Florida. Tourism and the potential for job market growth have always been proponents for a steady multifamily housing market — but when COVID-19 first hit in early 2020, many thought that this tourist-driven area might see a real downturn in momentum.
So, what does the Orlando multifamily housing industry look like in 2022 and beyond?
Orlando’s Hot Job Market
Florida, known as an in-migration state as a whole, has seen a significant amount of population growth over the last few years. This trend is partly due to above-average job growth but is also in response to the increase of early retirees due to the pandemic. Regardless of where people are coming from, the Sunshine State is already seeing some great job growth potential.
In 2021, the city of Orlando alone added 103,600 jobs to the area! In fact, Forbes has ranked Orlando as the 23rd best place for business and careers, and 6th in the country for job growth.
The fastest employment sectors of growth in 2022 and beyond show leisure and hospitality, financial activities, education and health services, and professional and business services to be the primary industries for the Orlando area.
And according to the Institute for Economic Forecasting at the University of Central Florida, the entire state’s unemployment rate is expected to continue declining throughout 2022.
Now that concerns about travel during the height of coronavirus have slowed, air travel and leisure tourism has quickly picked up in recent months.
Orlando International Airport was found to be the second busiest in Florida, providing service to nearly 50 million passengers from across the globe each year.
We expect that as international and domestic tourism continues to pick up in the coming months, Orlando will return once again to being a hotspot destination for those looking to visit the metro’s ever-expanding theme parks and entertainment venues.
Universal Orlando’s next major project, Epic Universe, is expected to open in 2025, which will undoubtedly add more jobs to the market.
Housing Supply Issues Prime the Rental Market
Unlike other city metros that experienced incredible real estate surges early on in 2020, Orlando’s housing market didn’t start to see action until 2021.
Single-family housing inventory levels are tanking, property value appreciations are skyrocketing, and the area’s available supply is pushing many towards its rental market out of sheer necessity. The housing inventory has dropped by 76% over the past year.
High Demand for New Builds
The multifamily market in Orlando is arguably one of the hottest segments of the market for potential real estate investors. Occupancy levels have increased from 94% to 96% in 2021, and the market ranks 12th out of 98 nationwide markets who are currently in multifamily development activities.
Today, we see this high demand for occupancy opportunities continue across the Orlando metro area. In fact, the rate climbed to 96.7% in December of 2021 — a whopping 60 points above the national average rate and the highest the area has seen since April of 2016!
Rent Ready is Ready for the Future
As this demand for multifamily housing trends continues to rise in the Orlando area and beyond, Rent Ready is here to help. Whether you’re an Orlando property manager or maintenance manager who’s looking for a one-stop shop for your apartment community’s turns, we have you covered.