Developers continue to tap into Central Florida's rising apartment rental rates with more than 18,000 apartment units either under construction or proposed, according to a new report.
And it's unlikely the trend of rental hikes, and apartment construction, will slow any time soon.
“Favorable market conditions seen in Orlando in recent years are forecast to continue with strong demand keeping occupancy rates above 96 percent, and spurring robust rent growth,” Kelly Reddecliff, a multifamily analyst at Real Data Inc., which released an "Orlando September 2018" apartment report, said in a prepared statement.
Those 18,000 apartment units total roughly $2.9 billion in construction costs, according to industry standards. Outside of surging rents, a growing population is feeding the boom in Central Florida apartment construction activity. Roughly one-third of the units being built are in Orlando's downtown or central submarkets.
New construction is an important local economic driver, generating jobs and bringing new homes into the market to support a growing population. It serves existing residents and businesses with new space for shops, offices and warehouses.
New projects near Disney
A pair of new apartment complexes has been proposed near Walt Disney World (NYSE: DIS).
- Roughly 216 apartments are slated between Buena Vista Drive and Winter Garden Vineland Road for a project called Addison at Cypress Sound, according to Orange County records. The project's estimated cost is about $35.6 million, per industry standards. Entity Dijon Real Estate owns the roughly 15 acres and acquired the property for $2.5 million in 2014. Site plans show a clubhouse, pool, dog park and barbecue area. Altamonte Springs-based upscale apartment developer ContraVest is the project's developer.
- About 383 apartments are proposed at 10000 Avalon Road in Horizon West on about 38 acres, according to Orange County records. The project's estimated construction cost is $63.2 million, per industry standards. Fort Worth, Texas-based D.R. Horton Inc. (NYSE: DHI) — the largest homebuilder in the U.S. — owns the land.
2017 C. Fla.* total new housing starts
| Rank | Prior Rank | Homebuilder |
|---|---|---|
1 | 1 | Lennar Homes LLC |
2 | 2 | Pulte Homes |
3 | 3 | Mattamy Homes |