Introduction:
The Florida rental market is expected to grow in 2025, coming in at #6 as one of the top 20 housing markets predicted for the new year. Even higher in the ranking is the Fort Lauderdale and Miami area, coming in at #2, according to realtor.com. A combination of new single family homes being build as well as rental communities on the rise, will bring major changes to the over all market throughout the US.
The Rising Demand for Affordable Housing in Florida:
With the cost of the average home in Florida predicted to reach over $400,000, the demand for rental properties will create a growing interest in build-to-rent living communities, especially in many areas in Florida, such as Orlando, Tampa and Miami. What draws investors into these development projects, is that they are seen as resilient, and over time, scalable options in the market where affordable housing is becoming highly requested. Orlando’s unique market, driven by tourism and employment opportunities, continues to attract a younger demographic in search of affordable housing and a comfortable cost of living. As a result, the rental landscape will continue to grow and evolve, with opportunities for both investors and renters. Orlando property management companies will play a key role in keeping up with this growing demand, offering expertise in overseeing these new developments and ensuring the smooth operation of rental communities.
Impact of Rising Construction Costs Across the U.S. :
Affordability remains on the minds of many as the cost of land and materials continues to rise. The U.S. housing market has shown notable recovery in the real estate market since the pandemic. While the housing market levels in November 2024 were recorded to be the highest since 2019, they still remain 20% below pre-pandemic pricing. Many continue to seek affordable rentals, though the contribution of new single-family home construction, has contributed significantly to the overall changes of the market.
Florida’s Rental Affordability Compared to Other States:
According to Apartments.com, studios to 1-bedroom apartments in Florida average between $1,500 and nearly $1,700, depending on the region. This ranks Florida as the 13th most expensive rent by state. Compared to the average $2,600 in New York City for a 1-bedroom or $2,400 in Massachusetts for a studio, it is no surprise that the Sunshine State continues to see renter growth in its future.
Conclusion:
With the rise in hybrid and work from home options post- pandemic as wellas government-backed loans, along with a growing share of military and international residents, housing dynamics in key markets have shifted, not only in Orlando but also in cities such as Phoenix, Arizona, and El Paso, Texas. Orlando property management companies will continue to adapt to these evolving needs, ensuring that both renters and investors benefit from the area’s dynamic rental market.
