Fall Multifamily Reports: the outlook remains sunny for Orlando and Tampa
Learn our top takeaways from the latest multifamily reports by Yardi and the ULI
The latest reports are in, and the future looks bright for the Orlando and Tampa multifamily markets.
To bring you our top fall multifamily insights, we looked at the Yardi Matrix September 2018 Multifamily National Report and the 2019 Emerging Trends in Real Estate® report from PwC US and the Urban Land Institute (ULI).
The Yardi report surveys 127 markets across the United States to analyze the current health of the multifamily landscape. While U.S. multifamily rents dropped $1 in September 2018 to $1,412, there was good news in terms of year-over-year rent growth.
Emerging Trends in Real Estate® is one of the most regarded annual industry outlooks for the real estate and land use industry. There’s great news for Central Florida, as both Orlando and Tampa made the top 10 markets to watch for the first time in the report’s 40-year history.
Our key takeaways from the reports:
- National rents increased by 3.0% year-over-year in September. Overall rents have slowly accelerated over the past 12 months, since reaching a recent low of 2.2% in September 2017.
- Orlando remained atop Yardi’s rankings of their top 30 markets, with 6.1% year-over-year rent growth. Tampa was not too far behind, with 5.2% YOY rent growth.
- Rents increased 0.1% nationally on a trailing three-month (T-3) basis. Although Orlando’s rent growth was flat, Tampa beat the average with 0.4% rent growth.
- Florida excelled in the markets to watch in 2019: Orlando is at #4, Tampa Bay/St. Petersburg is #10, and Miami and Fort Lauderdale are both ranked in the top 20.
- Orlando and Tampa Bay/St. Petersburg have been steadily gaining the interest of institutional investors and have seen increased interest during the economic recovery.
- Investors are finding the Orlando and Tampa markets attractive because of their demographic growth, friendly business climate and attractive cost structure.
Our opinion: it’s great to see I-4 corridor cities Orlando and Tampa as markets to watch in 2019. Long-term demand for rentals in Central Florida is likely to remain high: occupancy rates have increased, the renter-age population is growing, the economy is strong and there is demand from retirees looking to downsize from single-family houses.
You can view the full Yardi Matrix Multifamily National Report for September 2018 here.
You can view the full Emerging Trends in Real Estate® report here.
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