Central Florida’s growth has been one of its defining strengths in recent years. At the same time, that growth has brought increased pressure on the region’s housing supply.
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Recent reports underscore the scale of the challenge. Central Florida was recently named one of the most challenging metros in the nation when it comes to affordable housing for low-income families, according to the National Low Income Housing Coalition.
The region currently has just 13 affordable rental units available for every 100 extremely low-income families — with availability for middle-income households also declining. These trends show a market where demand continues to outpace supply across multiple sectors, but there are ways to combat this.
Population growth, job creation and sustained economic activity have created strong housing demand across Central Florida. However, new developments have slowed in recent years.
With challenges like higher interest rates, construction costs and constraints on financing, it’s increasingly difficult to bring new affordable housing units to market. At the same time, much of the inventory delivered in prior years has already been absorbed, further tightening availability.
These constraints have created a tough environment for renters and prospective homebuyers to have access to affordable options.
It’s important to note that housing supply is a key component of a region’s economic infrastructure. When availability is limited, it can affect workforce mobility, business expansion and overall market competitiveness.
This is why expanding supply requires sustained investment and coordination across both public and private stakeholders. In 2025, Bank of America provided $7.4 billion in financing to support affordable housing developments nationwide, representing more than 11,000 units.
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In Central Florida, two developments supported by this financing, both in Kissimmee, contributed to 180 affordable housing units last year, representing more than $94 million invested locally. While incremental, these efforts show a broader approach in increasing our housing supply over time.
Addressing housing constraints in Central Florida will require a combination of approaches. This includes improving development feasibility by streamlining permitting processes and aligning incentives to reduce barriers to new construction and accelerate delivery timelines.
The region will also need to expand workforce housing by increasing housing options for middle-income households to relieve pressure across the broader market. This will include preserving existing inventory by maintaining and rehabilitating existing affordable housing stock to help ensure continued availability as demand grows.
Finally, Central Florida will need a coordination of growth and infrastructure, as stakeholders align housing development with transportation and other essential services to support long-term regional planning.
While there are challenges to the region’s affordable housing availability, Central Florida remains well-positioned for continued growth. Ensuring that the housing supply keeps pace with that growth will be an important factor in achieving sustained stability and competitiveness.
Through continued investment and coordination among both public and private stakeholders, there is an opportunity to make meaningful progress in addressing these constraints and supporting the region’s future development.
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John Javier is a Lending Market Leader with Bank of America Central Florida.