While operators in Orlando’s Class A and B apartments resorted to price cuts in recent months, Class C stock is still recording rent growth. One of the trends that emerged in Orlando through the latter half of 2018 and into 2019 was the reversal of product class performance. Prior to 2019, Class C performance had been remarkably steady, with annual rent growth modest at 2% to 3% in any given month, while the upper-tier stocks performed notably better. In 2019 however, the trend quickly changed. While the Class C performance certainly did improve through 2019 and into 2020 (prior to the onset of COVID-19), the more eye-catching statistic was the extreme deterioration of Class A and B product. Layoffs and furloughs have significantly impacted the tourism-heavy Orlando jobs base, but legislative measures such as the CARES Act have helped buoy workforce housing performance in the Central Florida market.
