Orlando’s metropolitan area – Kissimmee – Sanford is always a lively destination for both visitors and residents, and the Orlando real estate market is booming. With popular tourist destinations such as Walt Disney World and Gatorland, luxury golf courses, restaurants and a host of other attractions and resorts, there really is something for everyone. Great weather and unlimited activities, as well as affordable homes and growing job opportunities, make this a popular destination.
Current conditions of the Orlando real estate market
- Housing and rental prices have risen significantly over the past year.
- The number of households has increased compared to last year, and the supply of housing is in serious shortage.
- Sentiment for builders and construction jobs has increased, while construction costs are steadily increasing.
Buying a home in Orlando
Home prices in Orlando
Median home value in Orlando: $ 310,000
National average: $ 371,000
In the Orlando metro area, house prices rose 12.7%. Although home prices are not as high as the national average, median prices in Orlando have risen by $ 126,000 over the past 5 years and continue to rise. Housing prices in the country have increased significantly by 22.4% compared to last year. This is impressive for the real estate market in general.
IN housing supply by country is at an all-time low. Nationwide, the housing stock is only 1.1 months. Over the past few years, delivery times of close to 3 months have been typical. The Orlando market has only 0.7 months of supply. This is an extreme shortage of homes for sale. This means that Orlando, like the rest of the country, is in the seller’s market. When there is such a shortage of homes and so many people wanting to buy, home prices rise and sellers can get far more for their homes than they ever thought. So this is a great time to sell and make big profits. However, buyers will have trouble buying with so much competition and so few products on the market.
Buying real estate in Orlando
While the supply is low and the demand for home purchases is high, some buyers are choosing to wait out the current market and rent housing. As with home prices, rental prices in the country and in the Orlando metropolitan area have also risen. The city now has a competitive buying market as well as a competitive rental market.
Average rental price in Orlando: $ 1,636.
National average: $ 1704
The stable growth in rental rates over the past 5 years is good news for investors. Their investment properties continue to increase their profits every year. In Orlando, rents are up 5.6% year-over-year and are up nearly $ 400 in recent years. Nationally, rental prices are up 3% from last year and are up nearly $ 300 since 2016. Rental prices are still on the upward trend, which means that now is a good time to enter the rental market as an investor. You will pay more to buy a home now, but rising rental prices may pay off your time.
Orlando Rental Jobs
Orlando Rental Vacancy: 8.1%
National average: 6.8%
On average, the number of rental vacancies in the country is 6.8%, and over the past few years they have remained fairly stable at this level. Vacancies for rentals in Orlando are slightly higher, but the rental market here is always fluctuating, which is to be expected in popular tourist and student cities. For investors interested in buying a rental property, they would do a great job in this area. The vacancy rate has dropped 1.9% to 8.1% from that time last year. With a decreasing vacancy rate and higher rental rates, the rental market could be a good investment opportunity.
Orlando foreclosure rate: 0.5%
National average: 0.3%
Foreclosure rates are at an all-time low. Both nationally and in the Orlando area, foreclosure rates have fallen over the past 5 years and fell 0.1% year over year. Now the number of cases of foreclosure is practically absent. With such a limited supply of homes, the foreclosure market has attracted more attention. Buyers and investors are hooked on great foreclosure deals and repaired or turned them over. Now it is more difficult for investors to find great foreclosure opportunities, but this is great for the real estate market. Fewer ramshackle and problematic foreclosures help increase the value of nearby homes.
One of the most expensive areas in Orlando is Bay Hill. The average home price here is $ 705,783 and the average rent is $ 3,264 per month. This suburb consists mainly of single family homes and townhouses with 3-5 bedrooms. The houses here are in good condition and retain their value. Despite the fact that there is a high level of vacant space (15%), almost 11% are seasonally occupied. Bay Hill residents work like professionals and executives, enjoying a luxurious lifestyle in fancy cars and country clubs. This area is one of the 15% richest areas in the United States.
Rural Orlando is Christmas and Beatlo, where the median home price is $ 305,958 and the median rent is $ 1,896 per month. Homes here are made up of mobile homes and medium to large single-family homes dating back to the 2000s. There are fewer vacancies – 7.1%, which means that this is a popular area. These upper middle class residents of Christmas and Beatles have a variety of management, sales, service, manufacturing and support roles.
A popular suburb of Orlando is Downtown. The average home price here is $ 351,245, and the rent is around $ 1,700 per month. Residential complexes and multi-storey apartment buildings, as well as medium-sized private houses, constitute here. Most of the houses were built in the 2000s and are known for their medium-sized apartments. There are a lot of vacancies in this area – 22.1%. This could be due to new construction that is not yet occupied, due to a problem with vacancies, or due to the fact that this is a popular tourist destination. Most of the places here are occupied by tenants, with 60% of residents being young professionals living alone. Downtown is Orlando’s city center with shopping, nightlife, restaurants and theaters.
Economic condition of Orlando
After a significant spike in unemployment as a result of the pandemic in 2020, unemployment rates in many cities finally fell back to pre-Covid levels. As businesses open at full capacity, travel restrictions are lifted and more job opportunities emerge, numbers continue to fall and approach the norm.
Orlando unemployment rate: 5.4%
National average: 6.1%
While Orlando the unemployment rate is not much lower than the national average, it is worth noting that the metro has advanced much further than other markets. The unemployment rate in Orlando at its peak rose to 22.6%. At the national level, the average was only 14.8% at the highest level. In just 1 year, Orlando was able to reduce the unemployment rate by 17.2%. Orlando’s economy bounced back sharply last year, adding 50,600 jobs over last year.
Top employers in Orlando
The largest employers in the Orlando metropolitan area work in the leisure and hospitality industry. The Walt Disney World Resort employs 75,000 people. The Universal Orlando Resort employs an additional 26,000 people. Jobs here range from greeters, waitresses and talents to maids, drivers and transport workers. Such large and popular resorts need thousands of people to provide all the services.
The healthcare industry is the next largest employment sector in Orlando. AdventHealth Orlando and Orlando Health each employ approximately 21,000 people. AdventHealth hosts recruitment events regularly throughout the year to offer opportunities to qualified candidates. Healthcare companies are always looking for qualified professionals and this is a great industry to get into.
Publix Supermarkets Inc. is the next largest employer in and around Orlando. This supermarket chain employs almost 20,000 people. With 31 offices in Orlando, Publix is the largest employee-owned supermarket and offers everything you need for food and pharmacy.
Orlando real estate market results
After a tough year due to the pandemic and its aftermath, the Orlando real estate market is back on track. Housing and rental prices are and continue to rise, the number of households has increased, and job opportunities are everywhere. The extremely low supply of homes is also impressive for Orlando – it is certainly a popular and in-demand city full of sun and fun.