Despite an influx of new residents for the past four years, Orlando’s average rental prices have dropped and housing permits have dropped to a five-year low.
Realtor.com’s latest rental report revealed that rents have continued to decline for 15 consecutive months.
Housing permits are also sliding.
“From November 2023 to October 2024, 23,163 permits were processed in the region — more than 6,000 fewer than the high set in 2021,” Orlando Business Journal reported. “The next lowest total since 2020 is the 24,274 issued that year. While not every permit will result in housing, the metric functions as an indicator of the future supply of homes, which affects prices.”
Amanda White, the vice president of government relations and research at the Florida Apartment Association, told OBJ that there are multiple culprits for the downward spiral.
“There are a number of headwinds in the housing market impacting new construction,” White said. “Not the least of which are factors such as inflated mortgage rates, a challenging lending environment and significant increases in development fees at the local level that often make it challenging for new construction projects to pencil out.”
