Many leading economists believe now is the best time to invest in multi-family housing, condominiums, and apartments. In the next couple of years, many metropolitan areas in the Southeastern areas of United States, Orlando and Atlanta, will have a higher than average growth rate in jobs, in turn it will create the need for more multi-family housing.
Fannie Mae Housing Industry Form explains the signifiant growth in multi-family housing in Orlando, Florida.
Multifamily starts for properties with five or more units are above historical averages with more than 340,000 units expected to be completed this year. That’s according to Dodge Data & Analytics, a database of proposed, underway, and completed commercial and multifamily real estate projects.
ORLANDO
Orlando was the poster child for the housing boom and bust, but now it’s being hailed for its ability to recover. Tourism has helped. Record numbers of visitors have made their way to Orlando, allowing it to recover faster than other Florida cities, and theme park expansions should keep tourists coming back.
About 6,400 multifamily units are under construction. Prior to the recession, most multifamily development was in condos—some 29,000 units since 2006 with 1,300 condo units under construction now. Some of these condos could be converted into apartments down the line.
The current rental outlook is steady, but a potential shadow inventory of condos-turned-apartments could affect the market’s health. The longer-term rental outlook is stable, but condo supply remains an issue. Still, the city is expected to need significant new supply of multifamily down the road.
SWET Construction Group
While the future of multi-family housing market is prosperous, there are a few challenges such as the rising cost of building materials and availability of labor. The SWET Construction Group is a premier contractor for multi-family and hospitality industry. 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.