Investors: Orlando Market is Magic
ARLINGTON, VA – It’s official: Investors say Orlando is the hottest market for investors, according to the latest edition of the National Apartment Association’s Market Momentum report, produced in partnership with RealPage. The quarterly survey of industry executives across the country reveals the most desirable markets for investment, rent performance and resident retention.
“Market Momentum survey respondents rank Orlando as the top choice for increasing near-term apartment investment, said RealPage Chief Economist Greg Willett. “Supporting this choice, RealPage stats reveal tight occupancy, solid rent growth and comparatively moderate ongoing building in Orlando. Seattle and Washington, DC remain favored metros, while Sacramento and Los Angeles are moving up the list. Miami, Dallas and Atlanta, markets that previously were viewed favorably, have dropped from the top-rated list.”
“Market Momentum is a valuable snapshot for our industry as it provides useful and timely data on what is happening in the marketplace and their expectations for the near-term,” said NAA President & CEO Robert Pinnegar, CAE. “Members use this information while developing their investment strategies.”
Seattle is the top market for expected rent growth for the second straight quarter. Others include Orlando, Sacramento and Los Angeles. Dallas/Fort Worth remains strong for expected rent growth, but according to Willett, this may be the last time North Texas makes the cut given the sharp slowing of pricing power seen in RealPage performance statistics in recent months.
Orlando also appears among the leaders for improving resident retention, compared to last year. Other markets scoring well in retention include Hartford and Miami, but the top markets are completely different than the previous quarter's list.
In this quarter’s Market Momentum, Houston has the lowest rating for resident retention, which could continue into next quarter following the effects of Hurricane Harvey on the housing market, as a portion of the displaced households who have just moved into Houston apartments will be short-term renters. Orlando shows up on the list for both best and worst momentum in renter retention, underscoring the varied experiences among individual operators.
National Apartment Association (NAA), America’s leading voice for the apartment housing industry, provides its members with the best range of strategic, educational, operational, networking and advocacy resources they need to learn, to lead and to succeed. As a federation of more than 160 state and local affiliates, NAA encompasses over 73,000 members representing nearly 9 million apartment homes globally. NAA’s purpose is to enable every single one of its members to fulfill his or her professional goals with great competence, speed and the highest standards of ethics. NAA thanks its strategic partners The Home Depot, RealPage Inc., and Yardi.
RealPage is a leading global provider of software and data analytics to the real estate industry. Clients use its platform to improve operating performance and increase capital returns. Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves over 11,200 clients worldwide from offices in North America, Europe and Asia. For more information about the company, visit RealPage.