Orlando’s already overpriced rental market is about to get much worse.
A recent study from national listing site RentCafe found that the Orlando area’s rental construction market is seeing a 46 percent decline in new units projected to be finished by the end of 2018.
According to the report, the City of Orlando accounts for nearly half of the the total area market, and so far this year has only added 1,700 new apartments, which is 53 percent less than the 3,600 units we built last year.
For comparison’s sake, the nation as a whole saw a cooling period this year, with just an 11 percent drop in new units. But not all of Florida is sharing Orlando’s apartment disparity. Jacksonville is actually projected to see a 51 percent increase in new apartments, while Tallahassee is expected to have a 168 percent bump.
If the concept of supply and demand means anything, this would at least help explain why Orlando’s average rent jumped last month to $1,387, which was a 7.7 percent increase, or nearly $100 a month.
Orlando’s lurching new construction market is concerning for a number of reasons– like, the fact that most of these apartments are already taken because we have an occupancy rate of 95.6 percent– but mostly because it piles on to our already robust affordable housing crisis.
According to a report from back in March from the National Low Income Housing Coalition, the Orlando-Kissimmee-Sanford area currently ties for second worst in the country for available affordable housing, with just 17 available and affordable units per 100 renters.
This, compiled with Orlando’s growing population, which some say will balloon by at least 3.2 percent in 2018, only makes things worse for anyone trying to not spend over 30 percent of their income on housing.
Basically, if new places to live don’t start popping up fast, it’s safe to say that Orlando’s rental prices, which you’re already paying too much for, will likely get much worse before they get any better.
Stay on top of Orlando news and views. Sign up for our weekly Headlines newsletter.