Source: Orlando Sentinel

Orlando’s apartment market is expected to further erode for the remainder of the year as “a weak economy stifles household formation and rental housing demand,” according to a quarterly report released recently by Marcus and Millichap.

The firm’s Apartment Research Market Update noted the opening of University of Central Florida’s medical school during the third quarter, stating that it has not averted a rise in vacancies but is expected to help diversify the economy and fuel growth.

Construction and permits continued to ease during the quarter, likely increasing demand with fewer new projects coming on line.

Rents have dropped, the report stated, although rental decreases may lessen with a stabilization of the economy in coming months.

Multifamily housing in Orlando’s northwest sector appears to be struggling with rents dropping more than 5 percent in the last year to an effective monthly rated of $616. Meanwhile the area’s vacancy rate was about 15 percent — the highest overall for Central Florida.

Continue Reading