**Orlando Apartment Market Maintains Strong Fundamentals Amid Supply Shift**
The Orlando apartment sector continues to show resilience, attracting interest from both investors and developers due to solid market fundamentals. A recent survey by Northmarq highlights that sustained in-migration is fueling demand, with absorption levels keeping pace.
While fundamentals remain mixed amid an ongoing influx of new apartment supply, Orlando’s robust population growth—up 12.7% over the past five years—has supported the absorption of approximately 8,000 units over the past year. This demographic trend has helped to minimize vacancy rate increases.
Encouragingly, supply pressure appears to be easing. The region’s construction pipeline has declined approximately 40% year-over-year, with projected deliveries in 2025 expected to drop 10% compared to 2024. These shifts point towards an improving supply-demand equilibrium in the coming years.
Investment activity saw a significant uptick in 2025, with transaction volume rising 56% year-over-year. The majority of investment focused on large Class A and B multifamily assets, even as prices continued to adjust in response to rising cap rates.
Looking ahead, the market is expected to maintain a steady vacancy rate near 8.9% through 2026. Rent growth is projected at approximately 1.2%, and a more favorable interest rate environment may support renewed investor confidence and selective acquisition opportunities.
