Orlando Multifamily Market Report

Market Overview

Orlando’s multifamily market boasts one of the most vibrant economies in the Southeast. It is notably driven by a consistent influx of people and rapid population expansion. The economy thrives on its increasing number of tech and fintech companies, its well-established and growing defense industry, and the renowned theme parks that are a vital city feature. In 2023, the demand for multifamily housing in Orlando exceeded the absorption rate of the previous year by almost 50%. This surge was primarily fueled by a renewed interest in Class A units, which accounted for 90% of the total apartment demand for the year.

According to Oxford Economics, Orlando’s population growth remains one of the fastest in Florida, increasing by 1.8% in 2023. Net in-migration accounts for approximately two-thirds of this growth.

Market Performance

In 2023, there was an uptick in demand for apartments in Orlando after a previous year of sluggish demand. Currently, the demand aligns with the 10-year historical average, thanks to a consistent pace of absorption. Nearly 13,000 units have been delivered in the last 12 months, fueled by an outsized share of population growth in the previous four years. One of the notable projects currently in progress is Catchlight Crossings, a mid-rise property comprising 1,000 units located in the I-Drive area. Developed by Wendover Housing Partners, this project occupies 20 acres of land donated by Universal’s Housing for Tomorrow.

Due to the ongoing robust rate of in-migration, anticipated strong leasing activity in higher-quality units will prevent vacancies from sharply increasing in the coming year. The average monthly rent in Orlando stands at $1,760, which is notably higher than the national average of $1,680.

Despite a decrease from the peak levels seen during the pandemic, Orlando still ranks among the top markets nationwide for total multifamily sales volume, with $1.7 billion in sales activity occurring in the past year.