At times when apartment rents are still, the demand for single-family home rentals is surging. Although these types of rentals were already popular, the Covid-19 pandemic increased their demand. As a result, rents show promising growth that is projected to boom in Orlando.
Single-family home rentals grew year over year in October by 7.5%. Furthermore, rents with lease renewals grew 4.1%. On the other hand, multifamily rent growth decreased by 1.4% in the fourth quarter.
Rent of single-family homes in built-for-rent communities could come with a higher price. Typically, these rentals tend to be 5%-20% more expensive. This is in comparison to similar, non-professionally managed homes. This is because the management service they provide justifies the higher rents. Although single-family home rentals are usually higher than apartment rentals, the price per square foot is often lower.
Furthermore, the rental occupancy for single-family homes was 95.1%. This is slightly higher than the occupancy rate of multifamily units, which was 94.8%. The higher percentage of occupancy shows that there is higher demand for rental homes.
Newly built-for-rent properties are very popular. In fact, more than 13,000 new rental homes may be built in Central Florida in the next decade. These types of rentals are appealing to several groups. For example, millennials. In addition, low-density rental communities are also attractive to families with children since they are very similar to a traditional single-family home.