Outlining the 2019 Owners & Officers Luncheon
Industry advancing, advocacy enhancing
Here's a look at our 2019 Owners & Officers Luncheon
Kicking off the Luncheon, we heard from our welcoming hosts, Bridgette Desko from the Addison at Windermere and our friends at ContraVest, who dove right into things providing intel on all of the Addison's property logistics.
Sitting down to feast, we heard from Mr. Luke Wickham, Senior Vice President of Multifamily at CBRE.
Luke did an excellent job covering all of the central Florida market bases. We discussed how our booming job growth, population growth, and tourist-attracting appeal, has positioned Orlando among the top leading markets in the United States.
Looking at a Market Overview, Luke guided us through the following information:
- Current Market Rental Inventory: our market has 206,168 market rental units.
- To offer an AAGO membership-market perspective, 190,000 of the 206,168 units, constitute our membership. This means, 92% of current market rental units are a part of AAGO membership. (Go, Team!)
- Population: 2.63 million, comparing this to last year’s population, of 2.5 million, we are growing at an unprecedented rate.
- Occupancy Rate: 96.3%
- The occupancy rate is the ratio of rented, or occupied units: the total amount of units
- 2020 Projected Occupancy rate of 95%
- Average Rent: $1,276, compared to last year’s average rent, Orlando experienced 6% rent growth
- 2020 Projected Average Rent: $1,353
Going on to discuss supply and demand, Orlando’s Metropolitan Statistical Area (MSA) has the 6th lowest homeownership rate in the nation. This statistic highlights the shifting of demand in a preferential housing product paradigm (a shift away from homeownership and towards rental housing).
Finally, we discussed our market’s strong economic trends and studied some of Orlando’s most competitive submarkets, which include:
And although competitive, both still maintain indicators of strong rental growth!
Then, we turned to the Florida Apartment Association’s Government Affairs Director, Ms. Amanda Gill who covered the must-know legislative happenings and all things APAC.
She highlighted differing political landscapes throughout the state. Explaining that, at the state level, we have a Republican trifecta (Republican Governor, as well as, a Republican-controlled House and Senate). Whereas, with many local governments, we such much more political diversity. A key difference to pay attention to when we learn about different ordinances popping up in various regions of the state.
Amanda went on to discuss FAA and AAGO’s-joint research project, the Housing Affordability Toolkit. The Toolkit’s data has been extremely well-received, offering compelling and tangible market-based data indicating what types of incentives local governments can offer to developers to meet the market’s rental demands.
Then, Amanda gave us a 2019 Legislative Session Recap, commemorating the success in the enaction of HB 7103 and HB 207. Additionally, we examined the FY 19-20 Budget which provided $192.6 million for Florida’s affordable housing programs, which gave $68.9 million than last year’s budget
We ended on a check-writing motivator, discussing the importance of contributing to APAC and how APAC funds play an essential role in our ability to effectively advocate for our industry.
The Top 2019 APAC contributors are...
> Mark Ogier with ContraVest
> Bonnie Smetzer, JMG Realty
> Chip Tatum, AAGO
> Erin Toung, ET&T Distributors
(*round of applause*)
Again, a big thank you to all of you who attended this year’s Owners and Officers Luncheon, as well as, to our amazing sponsors, each of who are the reason for 100% of luncheon proceeds benefiting APAC.
Now let’s advance our industry, together!