The next year Orlando, Florida is the top choice for investing in multi-family housing, according to a survey from both RealPage and the National Apartment Association.
Orlando’s job growth is increasing at an incredibly fast rate. Multifamily Executive wrote in a recent article ‘Apartment Investors Eye Orlando’, “The market is adding jobs at an average annual pace of more than 42,000 positions in 2017, expanding the job tally by 3.6%, according to RealPage. Those new jobs create a demand for housing that investors seem happy to help supply.”
History shows this booming metro area can absorb up to 10,000 to 12,000 units every year. However, the construction rate since 2010 has only been 5,000 units annually.
The current occupancy rate for apartments in todays market is 96.5%.
“While it’s good that today’s occupancy rate tops the U.S. norm of 95.5%, what’s really impressive is that Orlando’s present occupancy level is more than 200 basis points above the local long-term average, measured going back to the early 1990s,” says Greg Willett, chief economist of RealPage.
When it comes to rent growth for the next year, Orlando ranked second for the potential highest increase. According to the latest data from Reis, a reliable source for commercial real estate properties for investors, 2018 should be a ‘banner year’ for supply growth.
A wide demographic of people are attracted to Class B and C multifamily housing, such as downsizing baby boomers, as well as Millennials entering the housing market. Offering renters more bang for their buck.
Millennials are a prime target audience for multifamily housing, they are expected to increase by 2 million in 2017. Over the next seven years, this demographic is expected to surpass 70 million. Just one factor pointing towards investors seeing a large return on investment for affordable multifamily housing.
The future of multi-family housing market is prosperous.
The SWET Construction Group is a premier contractor for multi-family housing. We are committed to quality new construction and renovations of existing buildings. We pride ourselves in client satisfaction, delivering the highest efficiency craftsmanship and unmatched expertise and value.