The Orlando apartment market is booming. Occupancies are up and new unit absorption is hitting historic levels. These trends point to higher tax assessments for many multi-family property owners.
Orlando's overall occupancy level rose to 95.5% in March, according to the semi-annual census of apartments undertaken by Residential Market Reports. This is due to the near recording-breaking pace of absorption. Over the past year, 7,474 more units were absorbed. Of the total 165,111 rentable units in the area, 157,717 were occupied.
The majority of submarkets exhibited improvement over the past six months. Apopka had the highest apartment occupancy at 97.3%. North Orland/Winter Park/Maitland had the lowest at 93.2%.
At the same time that apartment units are filling up, the pace of new construction continues to be strong.
The March 2015 census found a total of 8,008 units under construction. This doesn't include five new complexes with 1,500+ units that were just breaking ground or in early site development at the time.
Appeals will be Necessary
With the robust apartment market in Orlando, owners should anticipate higher tax assessments. Even though the market as a whole is prospering, each individual property has its own challenges that may not be reflected in the average trends.
New Notices of Value will be issued in August and there's a 25-day period to file a formal appeal.