Orlando Multifamily Market Report

Household formations guide metro through flux period. Far from March 2022’s low, vacancy has doubled over the past 12 months. Up to 5.2 percent in April, further rises are likely, with Orlando adding a record volume of deliveries in 2023. Supply pressures are exacerbated as cornerstone employers, such as Disney, commence with large-scale layoffs, softening the near-term employment outlook. Despite these headwinds, the rate of household formation remains strong, thanks to Orlando being one of the lowest-cost rental markets in Florida. As of April, the metro was on pace to add a net of over 49,000 new residents this year, stoking a 2.5 percent household expansion. This should backstop property performance during this transitional period. Orlando will have the strongest age 20- to 34-year-old population gain among major Florida metros, a potential driver of near-term apartment demand as this group typically falls into the renter pool.