Recent statistical data shows that the rent in Orlando is not reducing, so the income of local homeowners remains high and stable. However, according to another new study, tenants of apartments in this area are getting far more space for their money.
The median asking rent in Orlando is $2,109 per month, which is 4% higher than last year. This indicator is based on the rent in Orange, Osceola, and Seminole Counties.
There is good news for local tenants too, however. They live in some of the largest apartments in the country. A study by RentCafe shows that the average area of new residences in Orlando is 90 m2, which is 8 m2 more than the US average.
The average floor area of American apartments is currently 82 m2, having reduced by 5 m2 over the past decade. The floor area of apartments in Orlando, however, has, vice versa, increased by 2 m2.
Tallahassee is at the top of the US rating of cities with the largest apartments. The average floor area of local homes is 109 m2. Gainesville comes second with the average floor area of 102 m2 in apartments. Orlando, at No. 20, is the next Florida city in the ranking.
Doug Ressler, a representative of Yardi Matrix, says that apartments in Orlando are growing fast to satisfy the needs of new tenants. Orlando is in the leading positions in a wave of new demand, he declares. Local properties are in high demand among older millennials and boomers, and all of them have certain needs.
Kenden Pettit, from the millennial generation, pays $2,250 per month, sharing a 120 m2 apartment in Orlando’s College Park with a roommate. He says it’s very convenient, as they both work from home, so such living quarters suit them.
A higher number of apartment dwellers who work remotely is one of demographic changes that, according to Ressler, forces developers to make homes more spacious. The growing families that usually buy homes also impact this decision. Mr. Ressler is confident that older millennials would have moved and bought homes, but this is not happening because of house prices. Mr. Pettit says he has been planning to buy a house for many years. He is waiting for the right option, as the supply remains low.
Many Orlando residents are in the same situation, as they wait for the local market to become affordable and offer more options.
Mr. Ressler explains that apartments in Orlando will continue to grow in size. The average floor area of a local residence is expected to exceed 92 m2 next year as over 12,000 new properties hit the real estate market.
This year, over 440,000 apartments in Orlando are being prepared for commissioning. Mr. Ressler calls this amount “unprecedented”. New homes will also compete with the growing market of single-family rental homes, so developers will strive to build even more spacious properties. This trend will probably slow down the rentals growth.
Mr. Ressler is certain that competition in the Orlando market will increase, which is supposed to slow down the rent growth.