Orlando Multifamily Market Report
Corporate Expansions Bolster Renter Demand; Construction Starts Tapering
Local employment and household growth support rental demand. Employment losses in the leisure and hospitality sector due to the pandemic negatively affected the performance of multifamily properties across the metro in 2020. The vacancy rate rose to as much as 5 percent, the highest since 2013, and the average effective rent contracted last year for the first time since 2009. However, the market has shifted in 2021 and job growth is now stoking rental demand. For example, Disney recently announced the relocation of 2,000 jobs from California to Lake Nona, and plans to reopen five of its resort hotels over the next few months as well as increase capacity limits at its theme parks. This will provide a boost to the local economy and stimulate household formation. The metro ranks second among major U.S. markets for projected household formation in 2021, which bodes well for rental demand and property performance.