Orlando Rental Market in 2025: What's Driving the Recent Price Decline

The Orlando rental market has experienced a rollercoaster in recent years, from unprecedented price surges and high demand to a noticeable cooling trend. For property owners and investors in Central Florida, these shifts raise a critical question: what's happening in the market?

At Orlando Property Management, we've supported countless landlords through these market changes. In this blog, we’ll dive into the factors behind this rental market correction and what it means for Orlando property owners in 2025.

The Pandemic Surge and Its Ripple Effects

To understand today’s market, let’s revisit the early 2020s.

The COVID-19 pandemic brought unique challenges to Orlando. While Florida’s restrictions were less prolonged than in other states, the tourism-driven economy—central to Orlando—faced significant disruptions, with many workers furloughed or laid off.

Federal relief programs stepped in, offering enhanced unemployment benefits of up to $875 per week in Florida, often surpassing pre-pandemic incomes. Combined with rental assistance programs like "OUR Florida," tenants could cover rent and living expenses, with some receiving up to 12 months of fully paid rent.

Meanwhile, an influx of workers from high-cost states like California and New York moved to Orlando, drawn by affordable rentals compared to their home markets. This migration intensified demand, tightening inventory and driving rental prices to new heights.

Low Interest Rates Fueled a Construction Boom

With soaring rents and strong demand, developers seized the opportunity, launching a wave of multifamily projects across Central Florida. Historically low interest rates in the early 2020s made borrowing cheaper, encouraging investors to acquire properties and fund extensive renovations, banking on sustained rent growth. Many set rental rates based on optimistic projections rather than current market realities.

However, this construction surge led to an oversupply of rental units. By 2023 and into 2024, the influx of new apartments and homes outpaced demand, shifting the market dynamics. With more units available than renters needed, competition among landlords intensified, pushing rental prices down significantly. This oversupply remains a key factor keeping rents lower in 2025.

A Market Correction in 2025

Fast forward to 2025, and Orlando’s rental market is undergoing a clear correction. In some areas, rental prices have dropped by 15-20%, particularly for higher-end properties. Inventory has surged, with nearly 8,000 new apartment units added in the first half of 2025 alone, pushing vacancy rates to around 7-8% metro-wide.

Vacancies are lingering, with properties sitting on the market for 30, 60, or even 90 days. To attract tenants, landlords are reintroducing incentives like one month’s free rent or reduced security deposits—tactics reminiscent of the 2008–2012 housing downturn.

This isn’t a crash but a market rebalancing after an overheated period driven by over-construction.

Why Your Orlando Rental Might Be Sitting Vacant

Central Florida landlords are feeling the pinch of longer vacancies.The primary culprit?

Pricing.

Today’s renters are well-informed, using online tools to compare real-time market rates. If your rent is even slightly above the current market, tenants will look elsewhere. With more properties available, renters have the luxury of choice, weighing amenities, location, and move-in deals. Properties priced at 2022 peak levels or lacking standout features struggle to lease.

How Orlando Landlords Can Thrive in 2025

To stay competitive in this shifting market, Central Florida landlords should consider these strategies:

1. Adjust Your Pricing Strategy

Check current rental rates for comparable properties in your area. Focus on today’s market, not last year’s highs. Competitive pricing is key to filling vacancies quickly.

2. Offer Strategic Incentives

If your property isn’t leasing, consider perks like a free month’s rent or lower deposits. These small gestures can make your listing stand out in a crowded market.

3. Prioritize Tenant Retention

Keeping reliable tenants is more cost-effective than dealing with vacancies. Proactively manage renewals, offering modest rent increases or stable rates to encourage long-term stays.

4. Partner with a Property Management Expert

Navigating market shifts requires local expertise. Orlando Property Management can help you set competitive prices, market your property effectively, and ensure compliance with all regulations.

Orlando’s Long-Term Rental Outlook Remains Promising

Despite current market adjustments, Central Florida remains a vibrant investment hub. Orlando’s population continues to grow, new industries are taking root, and the region’s appeal as a place to live ensures steady rental demand over time. While new construction has slowed, with starts dropping by ~60% in 2024, the market is gradually absorbing excess inventory. Data suggests rents may stabilize or see modest growth of 2–3% by late 2025.

To succeed in this competitive environment, landlords must stay agile, leveraging market insights to price rentals effectively and attract quality tenants.

Ready to Optimize Your Rental Property?

At Orlando Property Management, we specialize in guiding landlords through Central Florida’s dynamic rental market. From pricing and marketing to tenant screening and maintenance, we handle the details so you can focus on maximizing your investment.

Schedule a FREE rental property consultation today!

Owning rental property in Orlando is rewarding but challenging. With the right support, you can succeed in any market condition.