Orlando, FL

Market Update

Orlando's population has shown robust growth, increasing by approximately 4.35% year-over-year to reach 2,940,513 in 2024, up from 2,817,933 in 2023. This upward trend is supported by a net migration of 17,749 individuals, indicating a strong influx of new residents. The median household income stands at $81,044, while the unemployment rate is reported at 4.8%. With 38.3% of the population renting, these demographic factors contribute to a solid demand for housing in the area.

In the multifamily sector, the HUD Fair Market Rents indicate a median gross rent of $1,877, reflecting a year-over-year rent growth of 1.4%. The asking rents for various unit types, such as $1,650 for studios and $2,510 for three-bedroom units, suggest that the market is experiencing a moderate level of affordability pressure. While the growth in rents has not kept pace with the national median increase of 3.5%, the stability in rental rates may indicate a leveling off in the pace of rent escalation.

Capital markets for Orlando's multifamily properties are characterized by a cap rate of 7.45%, which is approximately 41 basis points higher than the 50-market median of 7.04%. Over the trailing 24 months, there have been 319 transactions totaling $1.07 billion, with a median price per unit of $200,000, aligning closely with the national benchmark. This data suggests a competitive investment landscape, although the cap rate indicates a potential risk premium relative to other markets. According to CBRE Research, the multifamily sector remains resilient, supported by ongoing population growth and demand for rental housing.