Due to the growing home prices and rising interest rates, many working families in Orlando, Florida, cannot afford to own a house. As a result of this trend, many developers started purchasing land plots and building new districts targeting tenants.
The number of residential projects intended for lease is growing throughout Central Florida. Experts are saying that this is only the beginning. “This is a somewhat innovative way of solving the greatest problem in the housing market, i.e. the supply shortage,” says David Howard, Executive Manager at the National Rental Home Council.
Although districts with properties designed exclusively for lease have existed in Orland since the 1980s (especially in tourist areas), this sector is now developing at tremendous rates. According to the National Rental Home Council, these properties accounted for only 3% of large developers’ offerings in late 2019. By the end of last year, this share surged to 26%.
Representatives of Northmarq, an investment firm monitoring the development of the Florida rental property market, say that Orlando is the major location for developers. “The vast majority of tenant-oriented districts are now being built in Tampa and Orlando,” says Luis Elorza, Managing Director of Investment Sales at Northmarq.
According to Northmarq, there are 335 residential units built for rent in the Orlando Metropolitan Area that includes Orange, Osceola, and Seminole Counties. Most of these units have been built over the past 10 years. There are 1,174 properties currently under construction in Greater Orlando and 824 more properties are planned. 11 new settlements will emerge over the next few years thanks to these projects.
Not only large companies but also private persons owning homes in Central Florida now benefit from high prices of residential property and high interest rates. As the rental demand increases, the rent will inevitably grow soon enough.