Report: Affordable Orlando apartments being filled to brim
Orlando Sentinel
Orlando’s supply of affordable apartments has fallen sharply over the past 10 years at a rate nearly twice the national average, a new report says, with occupancy rates for the lowest tier of rentable apartments at 97% in Orlando.
“Seeing 97% means that units are jam-packed,” said Adam Couch, a real estate market analyst with RealPage, which did the study.
Occupancy rates for what is known as Class C apartments began rising steeply in 2010, surpassing the Class A and B apartments in 2014. Over the past decade, Class C occupancy rates rose by more than 10%, twice the national growth rate.
Class C occupancy briefly hit 99% in 2019, spurred by a migration following Hurricane Maria. A rate of 95% is considered full capacity.
Couch said an increase in rent prices is likely pushing more people into the lower-tier apartments. Average rent for Class A apartments over the decade went from $921 to $1,462. Occupancy rates for Class A and B apartments in Orlando are at 94.6% and 94.5%, respectively.
“[These increases] are forcing renters into those lower rent apartments,” Couch said.
Another study released last month from Rent.com found the average rent in Orlando was 34.9% of the average monthly income. The national median ratio was 26%. Adding to the crunch for workers is that Orlando has the lowest median wages of the top 50 metro areas nationally at just $15.94 per hour.
Jaimie Ross, CEO of the Florida Housing Coalition, warned that this trend could have dire consequences.
“The consequences of an inadequate supply of affordable rentals is homelessness,” she said.
A lack of affordable housing is a common problem in metro areas throughout the state, Ross said. “We’re a desirable state for people to move to. As long as we’re an attractive destination for people to come here ... the workforce will be competing for housing.”