Orlando 2Q23 Multifamily Market Insights Report: Investors favoring large transactions

Highlights:

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• Property performance metrics in Orlando remain strong, with vacancy tightening in the second quarter and asking rents pushing higher. Several years of growth have attracted multifamily developers, with projects totaling roughly 25,400 units under construction.
• Area vacancy improved during the second quarter, after rising at the start of the year. The vacancy rate dropped 40 basis points in the last three months to 5.6%. The current vacancy rate equals the figure from one year ago.
• Asking rents trended higher during the last three months, rising 1% in the second quarter to $1,690 per month. Rents are up 2.8% during the past 12 months and additional increases are forecast for the second half.
• Multifamily sales activity has occurred at a slow but consistent pace through the first two quarters of 2023, following elevated levels in recent years. The median sales price thus far in 2023 is $215,000 per unit, while cap rates have been between 4.5% and 5.25%.

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