Interested in investing in Orlando, Florida? You’ll need a comprehensive guide to break into this red-hot locale.
Orlando boasts a very competitive housing market – listed homes here receive multiple offers, sell faster (11 days!), and go for 4% above asking price, on average.
This year alone, home prices in Orlando are 16% higher than in 2021, despite buyers gradually returning to the market after the pandemic.
Orlando is firmly designated a seller’s market because the overall demand for homes remains strong, but inventory is climbing. The good news? The Orlando Regional REALTORS Association (ORRA) reported that the current Orlando housing market can still benefit investors and homebuyers alike.
ORRA President Tansey Soderstrom is quoted as saying, “This new surge in inventory is a sign that the Orlando housing market is beginning to level out, which is good news for buyers and sellers. Buyers will find more homes to choose from, and sellers are still getting top dollar as Orlando’s median home price continues to rise.”
Still, if you’re eager to succeed when investing in Orlando, you’ll need some solid background knowledge.
Orlando’s population ranks as one of the fastest-growing 30 largest U.S cities. Every week, about 1,000 residents relocate to the Orlando region. Newcomers in Orlando are highly educated; about 69% of newcomers aged 25+ have a college education and 14% of them hold a graduate or professional degree.
Orlando’s new residents come from all over the country and from all corners of the globe. About 308,000 people live in the city of Orlando, but the metro area, comprising Lake, Orange, Osceola, and Seminole counties, boasts a staggering 2.4 million. The metro area saw a population growth rate of roughly 1.4% last year, and the most recent census reported that the Orlando population had climbed by 69,300 people since 2010.
Orlando Economic Partnership expects that Orlando will soon be growing by 1,500 people each week, and the population will reach 5.22 million by 2030.
In July 2022, it was announced that an impressive 82,100 jobs had been added in Orlando’s Private Sector over the past year. That’s a sizable 7.2% increase. In the same timeframe, approximately 64,121 people were added to the labor force, a 4.8% increase.
Orlando’s leisure and hospitality sectors are credited with creating the highest concentrations of employment opportunities. Trade, transportation, professional and business services, and utilities also play sizable roles.
According to U.S News, Orlando’s job market is less healthy than other metro areas of similar size. The average salary is $48,530 per year, which is less than the national average.
The area’s GDP shows 53% growth over the last 10 years, however, for a total of more than $144 billion. In the same vein, the Bureau of Labor Statistics (BLS) reported that the employment sector is facing fast growth in 2022. The 2022 unemployment rate is 2.6% with 19% employment growth projected by 2030, and approximately 500,000 jobs are expected to emerge within 10 years.
This July, the year-over-year price growth was 23.4% for homes in Orlando, Florida. The median home list price is $399.9k, and the sold price is $378k. About 19.9% of inventory in Orlando saw an inventory increase of nearly 20% in summer 2022, for 6,518 homes listed in 2022 as opposed to 5,437 homes listed the previous year. That’s an inventory growth of 8.5%.
Some key home value stats of Orlando, Florida, include:
Orlando rents are spiking, which is good news for investors.
There was an 18.7% year-over-year rise in rents in the second quarter of 2022. As many people moved to Orlando, there was an increased capacity and willingness to pay higher rents.
Here are some additional statistics on Orlando’s rental market
Orlando gets a Very High Quality of Life score from Numbeo. Purchasing power, climate, and health care received the top scores, whereas the pollution and property price to income ratio in Orlando scored more poorly. Other factors such as safety, traffic, commute time, and cost of living received moderate scores.
Sunshine, anyone? Orlando has a subtropical climate.That means that winters are very mild, and summers are hot and humid. Frequent thunderstorms are common, particularly in the summertime, and, depending on the year, hurricanes and other tropical storms are possible. Hurricane season runs from early June through late November.
Orlando’s housing market is red-hot, and evolving fast. High demand for houses, a rapidly growing population, and a rising economy are just a few key reasons why investing in Orlando might make sense.
So, what are you waiting for? An investment home in the Sunshine State is just a few clicks away.
Whether you’re purchasing one Orlando home or one hundred, you don’t have to go it alone.
If you’re ready to buy your first (or next) investment property, here are 3 steps to get started today:
McKenna is an Evernest Content Strategist based in Denver, Colorado. Her expertise spans the real estate and home financing sectors. When not writing, she enjoys picnics, yoga, and antiquing.