Financing Multifamily Deals in Central Florida: Data-Driven Insights & Strategy
- Sydney Avolt
- Sep 16
- 2 min read
Updated: Sep 17
The multifamily sector in Central Florida continues to attract investors and developers, but the financing landscape has shifted. Costs are higher, risks are more pronounced, and capital structures are being tested. The key to navigating this environment is data-driven decision-making. These insights were noted by Sydney Avolt, Director of Marketing at Cliggitt Realty, who attended the Interface Conference: Central Florida Multifamily Conference and tracked the market themes shaping today’s deals.
Key Market Metrics
Metric | Value / Trend | Notes |
Average Monthly Rent (Tampa Bay, all property types) | ~$2,208 | Asking rents, August 2025 |
Orlando average asking rent | ~$2,010 | August 2025 |
Vacancy Rate (Florida multifamily, statewide) | ~6.9% | Up from ~5.8% a year ago |
Tampa multifamily vacancy | ~6.5% | Reflects metro vacancy |
Orlando multifamily vacancy | ~6.2% | Reflects metro vacancy |
Net absorption Tampa (12-mo. period ending Q1 2025) | ~5,700 units | Up ~29% vs 2020-24 average |
New supply Tampa Q1 2025 | ~3,100 units | Completions, some delayed by storms |
Median Household Income (Tampa Bay) | ~$77,900 | ↑4.0% year-over-year |
Insurance cost increase (Florida multifamily) | ~150% in 2 years | ~$800/unit → ~$2,000/unit |
Impact of insurance on values | ~6.8% decline since 2019 | Compared to ~3.6% nationally |
Cap rate trend (Florida multifamily) | ~5.5% Q2 2025 | Above national average of ~5.2% |
What the Data Means
1. Margins Under Pressure
Insurance, hurricane risk, and construction costs are driving expenses sharply higher. Middle-income renters are being priced out, which complicates underwriting and long-term absorption assumptions.
2. Interest Rate Reality
Deals that worked at 3% no longer pencil at today’s higher rates. Bridge loans, mezzanine capital, and layered structures are increasingly required. Well-capitalized players remain best positioned.
3. Florida’s Strengths
Despite these hurdles, Sarasota, Tampa Bay, and Orlando remain among the strongest markets in the Southeast thanks to population growth, job creation, and Florida’s tax-friendly climate. Long-term fundamentals remain bullish.
4. Underwriting Takeaways
Stress-test vacancy at 6–7% or higher.
Assume modest rent growth in line with inflation.
Build in higher operating expenses, especially for insurance.
Model conservative exit cap rates.
Conclusion
The fundamentals of Central Florida multifamily remain compelling, but success depends on adaptability in financing and discipline in underwriting. Rising costs and higher rates require smarter deal structures and sharper risk management.
As Director of Marketing at Cliggitt Realty, I found the Interface Conference reinforced a clear takeaway: the market is evolving, but opportunity remains strong for those who plan strategically and think long-term.
If we can assist with any of your real estate needs, please contact me today!
Sydney Avolt
Cliggitt Realty
Director of Marketing
727.403.7418 - Direct Line
Sources
Graystone Investment Group, Tampa Bay & Central Florida Rental Market Report, August 2025.
Largo Capital, Florida CRE Market Update, Q2 2025.
Northmarq, Multifamily Market Insights, Q1 2025.
Cushman & Wakefield, MarketBeat Report, Q2 2025.
Matthews Real Estate Insights, Florida Multifamily Operational Costs, 2025.
YieldPro, Insurance Costs and Multifamily Housing, 2025.
CBRE Research Brief, Insurance Costs Suppress Multifamily Values, 2025.
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