ORLANDO, Florida – The Orlando real estate market is seeing the biggest rent increases in history. Experts say the boom is unprecedented and can be blamed on the housing market.
Rent in the City Beautiful doesn’t look so pretty. Over the past year, rents in the Orlando market have risen nearly 14%, according to CoStar Group, a company that analyzes the housing and commercial real estate industry.
“We’ve never seen such demand in Orlando,” said Brian Alford, Florida director of market analysis for The CoStar Group. “If you look at the market, all of Orlando is seeing record levels of rental growth.”
The average rental cost in the Orlando market is around $ 1,500. Alford says it’s getting hard for people to afford and says the spike doesn’t appear to be caused by lingering pandemic effects.
“This compares to the worst of the pandemic when rents went down in the first two months, but they only went down by 2%, so even if you adjust for that, we still see levels of rent growth. unprecedented in the past year. “
Alford attributes the drastic upward trend to the housing market, which local estate agents are seeing firsthand.
“They have to keep renting and it’s a bit sad,” said Milton James, real estate sales associate at RE / MAX Prime Properties.
James says that because the housing market is so hot, homes are selling out quickly and inventory is low, it forces tenants to stay put.
“We are seeing multiple offers at all prices,” James said. “A first-time buyer gets beaten up. So because he keeps getting beaten he has to keep renting. So demand is up and if demand goes up, prices go up.”
People are not only stuck on the rent, but many are struggling to pay it. Alford predicts that this uptrend will stop, but not until more people have signed another lease.
“Rent growth won’t stay that high. It really can’t keep growing at this rate. It is already pushing the limits of what people can afford,” Alford said.