While Class C apartments in Orlando have ranked among the fullest in the nation for the last few years, this stock is starting to show signs of weakness in the COVID-19 pandemic. Since 2015, occupancy in Orlando’s Class C product line has stood above 97%, peaking at 99% in 3rd quarter 2019. However, the economic strain from the COVID-19 pandemic is hitting tourism-heavy markets like Orlando particularly hard. Additionally, with Class C payments more at risk than Class A and Class B counterparts nationwide, Class C units are especially vulnerable. While the impacts of the pandemic had barely started to show in the 1st quarter data release, Class C occupancy in Orlando dipped slightly to 98.2%, marking a two-year low. Look for further decline in this asset class in the near term, as the nation’s economic challenges expand.
