High Supply Meets Higher Demand in Florida’s Lakeland
The small market of Lakeland, FL, about halfway between Orlando and Tampa, boasts some of the state’s strongest occupancy, despite prolific supply coming online in the market of about 27,000 units for the last several quarters. Lakeland has had no trouble absorbing new construction, as demand has consistently outpaced supply since the early days of the pandemic. Annual supply peaked at 1,800 units back in 2nd quarter 2021, growing inventory 6.9% – one of the highest in the nation at the time. Since early 2020, occupancy has climbed to stand at a 16-year high of 98.2% in 3rd quarter 2021. The only Florida market to top that rate was Naples, a comparably sized market that is not seeing the construction levels that Lakeland is. Supply is expected to moderate slightly as another 1,200 units are scheduled to deliver in the next 12 months.