2022 is shaping up as the best of times for apartment construction in the U.S., with no less than 420,000 new rentals expected to be built nationwide by the end of the year, according to a RentCafe report. And considering 2021 as well, the last time deliveries went over 400,000 units in one single year was in 1972.
Orlando metro is firing on all cylinders on the development front, with 11,338 new apartments expected to hit the market by the end of this year. Orlando holds the 11th largest number of projected deliveries nationwide, securing a spot among the top 20 U.S. metros by estimated number of apartments, right behind Los Angeles, California (11,536 units) and Washington, D.C. (12,176 units).
Here are some highlights:
- Current projections place Orlando metro on track to hit a five-year record in apartment construction. In 2017, 7,445 new rental units were added to the market, with completions steadily declining throughout the following three years — 7,587 units in 2018, 7,317 units in 2019 and 4,790 in 2020. But, by 2021, development picked up pace again in this bustling metro area.
- Construction rates in Orlando metro are up by almost 4% compared to last year, when 10,945 new apartments hit the market. This is a very welcomed increase for a competitive market like Orlando, where 22 renters, on average, are applying for one vacant apartment.
- When looking at the metro’s top contenders for apartment projections, the city of Orlando takes the lead with 6,126 new units expected by the end of the year. Around 2,300 of these apartments were built in the first half of 2022 in the City Beautiful.
- Kissimmee and Winter Garden complete the metro’s podium, with a strong pipeline of apartments — 1,725 units and 1,238 units, respectively.
“The construction industry is finally returning to pre-pandemic levels of activity but is still being hampered by three familiar challenges: labor shortages; material costs and availability; and supply chain issues,” said Doug Ressler, manager of business intelligence at Yardi Matrix.
For more information about the top U.S. metro where apartment projections are setting new records, you can read our full report here.