The Orlando Business Journal has reported that average apartment rents in Orlando, Florida are growing at a rate of -0.4%. So, not growing. Negative growth. Which is news, because we were seeing post-pandemic rent growth in the neighborhood of 24% year-over-year. That's quite a bit of growth.
So why is this important? Atrium Partner, Adam Wonus, explains:
"It's a big deal because, broadly, a lot of people were basically paying prices for buildings based on what the future rent growth was expected to be — and so now that has gone away," Wonus said. "It's going back to normal, you could say, and you can't project that there's going to be 10% or 12% increases next year."
Some have asked whether this changes out outlook on projects such our Milk Stacks apartment development in the Milk District. Our answer is not at all. We've been carefully watching and anticipating a correction of sorts like this, and we're still very excited as this much anticipated project comes out of the ground.
To read more from the OBJ article, go here: https://www.bizjournals.com/orlando/news/2023/06/22/rent-apartments-central-florida-decrease.html.