Market Report
Orlando Multifamily Market Report
2025 Investment Forecast
Young Adults Propel Apartment Use as
Enhanced Returns Reinforce Investor Confidence
Declining inflation unleashes pent-up housing demand. Orlando welcomed nearly 80,000 new residents in 2024, driven by young professionals and affluent retirees. Reduced price-pressures are expected to further strengthen household formation in 2025, particularly among young adults who delayed moving out due to the pandemic and elevated inflation. With the metro projected to have the highest household growth rate in the country, and the gap between the average mortgage payment on a median-priced home and monthly rent holding at over $1,500, many are likely to opt for apartments. This demand should help absorb new units as deliveries moderate, with supply pressures easing most notably in rapidly growing suburbs like Kissimmee and Horizon West. As a result, Class A rentals are expected to record improved fundamentals, reflecting a wide-ranging renter base that will position Orlando for among the fastest rent growth in the country this year. Completions are meanwhile shifting toward closer-in areas like Pine Hills and Oak Ridge, driven partly by more relaxed zoning laws. Developers in St. Cloud and Osceola County have faced local opposition to new projects, potentially deterring future development.
TO READ THE FULL ARTICLE
