We’ll be discussing the latest Orlando real estate market trends & forecasts to find out how they can affect homebuyers and sellers in the next six to twelve months. After a big slump in real estate sales during April, May, and June, home sales have bounced back since July in the Greater Orlando housing market.
Tight inventory and buyers returning to the market who were hesitant after the start of the pandemic means Orlando home prices are expected to remain strong. As per the current market trends, Orlando is all set to remain a seller's market in the next 12 months. In November, home sales in the Orlando area spiked 20.4% over the same time last year, according to the latest report from the Orlando Regional REALTOR® Association (ORRA).
A total of 3,251 homes were sold in November which shrank the inventory by 26.2% year-over-year. The number of days on market (DOM) has fallen to an average of just 44 days, the lowest in three years. “The highest demand is for homes between $200,000 to $350,000,” according to 2020 ORRA President, Reese Stewart, RE/MAX Properties SW.
Orlando Real Estate Market Trends
According to the national real estate brokerage, Redfin, the Orlando housing market is very competitive. Homes in Orlando receive 3 offers on average and sell in around 17 days. The average sale price of a home in Orlando was $284,000 last month, up 7.1% since last year. The average sale price per square foot in Orlando is $163, up 7.9% since last year. Hot homes can sell for around list price and go pending in just 5 days.
According to Realtor.com's November 2020 market report, Orlando is a seller's market report, which means that more people are looking to buy than there are homes available.
- The median list price of homes in Orlando, FL was $275K, trending up 1.9% year-over-year.
- The median listing price per square foot was $165.
- The median sale price was $277K.
- Sale-to-List Price Ratio: 98.64% — a seller would always prefer scenarios that can yield a ratio of 100% or higher while a buyer would prefer a sale to ask price ratio that’s closer to 90%.
- On average, homes in Orlando, FL sell after 57 days on the market.
- The trend for median days on market in Orlando, FL has gone down since last month, and slightly down since last year.
- Lake Nona South has a median listing price of $564.5K, making it the most expensive neighborhood.
- South Semoran is the most affordable neighborhood, with a median listing price of $120K.
Below is the latest housing market data for the Orlando Area released by the Orlando Regional REALTOR® Association (ORRA) on December 15, 2020. It clearly shows us that Orlando is a hot seller's real estate market and is bound to remain skewed to sellers in the near future as well.
HOUSING SUPPLY & INVENTORY
It would take on average 1.72 months to sell all the available inventory in the greater Orlando area right now. There is less than a month’s supply of homes in the price range of $180,000-350,000. Housing economists generally consider a five to six-month supply to indicate a healthy market that is balanced between buyers and sellers. Less than that is considered a seller’s market.
That shows that Orlando is a seller's real estate market having low inventory combined with lots of buyers looking for properties. A hot market would lead to a faster sale at or above the asking price. Although buying a home in a strong seller’s market can be difficult, it’s still possible to secure a deal. Don't forget that mortgage rates are at their record lows. Average rates have fallen to 2.7%, a dramatic difference from the past two years: 3.6% in 2019 and 4.9% in 2018.
ORLANDO MEDIAN PRICES
Low inventory coupled with high demand continues to drive up home prices. The median price for all types of homes increased by 14.6% from November 2019 to November 2020 and is now sitting at $275,000.
- The median price for single-family homes rose 15.1% from $259,000 in November 2019 to $298,000 in November 2020. There was also a 2.8% increase from October.
- For condos, there was also a significant change in price from year-to-year (11.1%). The median price was $135,000 in 2019 and increased to $150,000 in 2020. Prices were unchanged from October.
- For duplexes, townhomes, and villas, the November median price rose 4.2% from $217,000 in 2019 to $226,000 in 2020 but dipped 5.0% from the prior month.
SALES YEAR-OVER-YEAR COMPARISON
- A total of 2,592 single-family homes sold in November, accounting for a 25% increase over November 2019, when 2,073 single-family homes sold.
- Condos were the only housing category to show a year-over-year decline (4.1%) with 326 sales in November 2020 and 340 in November 2019.
- November’s 37 distressed home sales accounted for just 1.14% of sales, fewer than the same time last year (4.3%) and the prior month (1.8%).
Note: ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties.
SALES MONTH-OVER-MONTH COMPARISON
While the overall number of homes sold in November increased dramatically from 2019 to 2020, sales of all types showed significant declines compared to October. There were 10% fewer single-family homes, 14.9% condos, and 10.9% duplexes townhomes and villas sold.
ORRA's latest report shows that for a second straight month, the number of pending home sales has decreased, and now stands at 4,688, a drop of 5.8%. The number of new homes listed for sale in November fell 3.8% year-over-year. However, new contracts rose from November 2019 by 14%, during what is typically a slow time of year.
ORLANDO MSA REAL ESTATE SALES
Year-to-date sales are down 4.6% overall. Across the entire Orlando MSA, home sales grew in November.
Each county's sales comparisons are as follows:
- Lake: 5.7% above November 2019
- Orange: 19.6% above November 2019
- Osceola: 26.1% above November 2019
- Seminole: 18.8% above November 2019
ORLANDO HOUSING AFFORDABILITY
The local realtors anticipate that home prices would rise due to tight inventory and pent up demand. According to ORRA, the average interest rate paid by Orlando homebuyers in November was 2.7%, down from 2.72% the month prior. The Orlando housing affordability index for November was 140.59%, down from 142.80% last month. The first-time homebuyer affordability index decreased to 99.97% from 101.55% last month.
The index is based on a 10% down 90% Loan to Value Ratio. An affordability index of 99% means that buyers earning the state-reported median income are 1% short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.
ORLANDO REAL ESTATE MARKET FORECAST 2021
Orlando housing market will continue the trend of the last few years as a strong sellers' market. It is also one of the hottest real estate markets for investing in rental properties. What are the Orlando real estate market predictions for 2021? Let us look at the price trends recorded by Zillow over the past few years. Since 2012, the Orlando home values have appreciated by nearly 123%, from $122,000 to $272,605.
The Zillow Buyer-Seller Index (BSI), which is computed monthly, considers Orlando a hot seller’s real estate market. There exists a limited supply of homes in Orlando, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers.
Currently, Orlando ranks 35th out of the top 50 metro areas for home appreciation. Here is the latest housing forecast for Florida, Orlando, and Orlando MSA until November 2021.
The forecast for 2021 is that the shortage of supply and an increase in the demand for housing from new homebuyers will push the prices higher in the next twelve months. Low mortgage rates will bolster the home buying market and continue pushing up home price growth. For sellers, now is the opportune time to put their Orlando home up for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase.
- Florida home values have gone up 7.1% over the past year and the latest forecast is that they will rise 10.1% in the next year.
- Orlando home values have gone up 7.1% over the past year and the latest forecast is that they will rise 10.1% in the next year.
- Orlando-Kissimmee-Sanford Metro home values have gone up 6.7% over the past year and Zillow predicts they will rise 8.9% in the next twelve months.
The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until November 2021.
Here is another short and crisp Orlando housing market forecast by “LittleBigHomes” for the 3 years ending with the 3rd Quarter of 2021. They estimate that the probability of rising home prices in Orlando is 85% during this period. If this price forecast is correct, the Orlando home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
The change in home prices for Orlando-Kissimmee-Sanford, FL is shown below for the three-time periods (data up to 3rd Quarter, 2018). The Orlando Home Price Index has increased for the last 25 consecutive quarters. The highest annual change in the value of houses in the Orlando Real Estate Market was 32% in the twelve months ended with the 4th Quarter of 2005.
The worst annual change in home values in the Orlando Market was -21% in the twelve months ended with the 4th Quarter of 2008. The highest growth in home values in the Orlando Real Estate Market over three years was 76% in the three years ended with the 2nd Quarter of 2006. The worst performance over three years in the Orlando Market was -41% in the three years ended with the 2nd Quarter of 2010. For upcoming updates, you can visit this page.
|Time Period||Orlando Metro Area Real Estate Appreciation|
|Last 5 Years||59%|
|Last 10 Years||18%|
|Last 20 Years||131%|
Impact of COVID-19 on The Orlando Housing Market
The Orlando housing market in February saw its home sales improve by more than 4% compared to February 2019, while the median price increased by 6% to $250,000. Inventory experienced a year-over-year decline of 17% and continues to be a mitigating factor, as reported by Orlando Regional REALTOR® Association.
The overall median price of Orlando homes (all types combined) sold in February is $250,000, which is 6.38% above the February 2019 median price of $235,000 and up 2.0% compared to the January 2020 median price of $245,000. The median price for single-family homes in February increased 8.0% over February 2019 and is now $270,000. The median price for condos increased by 6.2% to $145,500.
Orlando’s housing market in March saw its home sales rise by nearly 2% compared to March 2019, while the median price increased by 8%. Inventory experienced a year-over-year decline of 10%. There was no solid impact of the COVID-19 pandemic in March. The overall median price of Orlando homes (all types combined) sold in March increased by 7.9% to $253,500, which was above the March 2019 median price of $235,000 and 1.4% above the February 2020 median price of $250,000.
The impact of the pandemic was first felt in April. The numbers revealed an expected decline in sales. Home sales dropped 28% to show an anticipated decline in activity as a result of the stay-at-home restrictions. The median home price increased by 12% while inventory experienced a year-over-year decline of 3%, according to ORRA. The prices held up mainly due to a shortage in the supply of available properties.
The overall median price of Orlando homes (all types combined) sold in April was $263,750, 4.0% above the March 2020 median price of $253,500. Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in April were 32.4% lower than in April of 2019. To date, sales in the MSA were down by 7.2%.
In May, there was a major decline in sales, much more than in April. ORRA reported 2,127 sales of all home types combined, which was 44.1% less than the 3,806 sales in May 2019 and 11.1% less than the 2,393 sales in April 2020. Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May were 43.9% lower than in May of 2019. To date, sales in the MSA were down by 16.4%.
On the other hand, home prices continued to rise in May as closings and inventory fell. The overall median price of Orlando homes (all types combined) sold in May was $259,900, which was 7.0% above the May 2019 median price of $243,000 and 1.5% below the April 2020 median price of $263,750.
June was a month of recovery from the slump due to the COVID-19 pandemic. Home sales skyrocketed in June, up nearly 46% from May. As compared to June 2019, the sales dropped by 9%. The number of homes for sale continued to be an issue, as June inventory experienced a decline of 19% when compared to June of 2019.
The overall median price of Orlando homes (all types combined) sold in June was $265,000, which is 6% above the June 2019 median price of $249,999 and 1.9% above the May 2020 median price of $259,900. Months of supply was 2.1-month for June. There was a 2.4-month supply in June of last year and a 3.4-month supply in May.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were 13.4% lower than in June of 2019. To date, sales in the MSA are down by 15.8%.
- Lake: 15.6% below June 2019.
- Orange: 18.5% below June 2019.
- Osceola: 6.8% below June 2019.
- Seminole: 3.6% below June 2019.
Orlando Housing Market Bounced Back in July
Orlando’s housing market in July saw a surge in buyer activity that tipped home sales back into the black after three months of precipitous year-over-year declines caused by the COVID-19 pandemic, reports the Orlando Regional REALTOR® Association. The median price of homes sold in Orlando continued on its upward path, while inventory fell to its lowest level this year.
|The overall median price of Orlando homes (all types combined) sold in July is $270,000, which is 9.2% above last year's price.|
|It is above 1.9% above the June 2020's median price of $265,000.|
|The median price for single-family homes that changed hands in July increased 10.1% over July 2019 and is now $295,000.|
|The median price for condos increased 5.1% to $145,000 and townhomes/villas/duplexes increased 4.6% to $224,900.|
|Members of ORRA participated in 3,679 sales of all home types combined in July, which is 1.4% more than the 3,628 sales in July 2019.|
|Sales of all home types combined are 18.6% more than the 3,103 sales in June 2020.|
|Sales of single-family homes (2,920) in July 2020 increased by 2.4% compared to July 2019,|
|Condo sales (401) decreased by 4.8% year over year.|
|Duplexes, townhomes, and villas (358 combined) increased 0.9% over July 2019.|
|Pending sales in July are up 8.7% compared to July of last year and are down 1.5% compared to last month.|
|New contracts are up 8.2% year over year, and new listings are up 3.6%.|
|The average interest rate paid by Orlando homebuyers in July was 2.97%, down from 3.04% the month prior.|
|Homes to an average total of 93 days from listing to closing (up from a total of 87 days the month prior).|
|The overall inventory of homes represents a decrease of 22.2% when compared to July 2019, and a 5.1% decrease compared to last month.|
|There were 32.7% fewer single-family homes; 11.4% more condos; and 22.8% more duplexes/townhomes/villas, year over year.|
***The latest market report and trends (November 2020) have already been discussed above***
The question now is what happens moving forward. These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? It is quite evident that the ongoing pandemic has not had any major impact on Orlando's housing market. However, it was quite expected that social distancing, higher unemployment, and lower overall economic activity would constrain real estate activity in the near term. And it did happen from April onwards.
The sales took a massive hit in the past couple of months with signs of great recovery in July. After three months of year-over-year declines, sales in July have bounced back. The industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.
COVID-19’s impact on the Orlando housing market was not that extreme but according to ORRA, any future depression in sales can be attributed to an accelerating lack of inventory. We can see that supply remains very low indeed. The overall inventory of homes that were available for purchase in November represents a decrease of 26% when compared to last year. The same trend can be seen for single-family homes. There were 39% fewer single-family homes year over year.
What does it mean for homebuyers in Orlando? The biggest mistake buyers make is sitting around waiting for sale prices to decline while their potential mortgage payment plummets. Mortgage rates are at their lowest ever. This is the time for buyers to take advantage before they are increased again. Properties purchased today are expected to continue appreciating over the next 12 months.
In conclusion, we can say that Orlando and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Orlando can become a buyer’s real estate market if the supply increases to more than five months of inventory.
And that’s not going to happen. We can conclude that demand has not only recovered from the COVID-19 pandemic but has reached heights that make it very strong by any historical standard. Hence, Orlando real estate market remains strong and skewed to sellers, due to a persistent imbalance in supply and demand.
Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Orlando in 2021 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance.
Orlando Real Estate Foreclosure Trends
ORRA reported that sales of distressed homes (foreclosures and short sales) drooped to 37 in November. This accounted for just 1.14% of total sales, fewer than the same time last year (4.3%) and the prior month (1.8%). In October, there were 67 distressed homes, accounting for 1.84% of all Orlando area transactions.
According to RealtyTrac:
- Pre Foreclosures are down 61.9% from last month and 91.3% from last year.
- Auctions are down 91.7% from last month and 77.7% from last year.
- Bank Owned foreclosures are down 125% from last month and 82.7% from last year.
Here's the current distribution of foreclosures based on the number of active foreclosure homes in Orlando, FL.
Orlando Real Estate Investment: Should You Invest in Orlando?
Is Orlando a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying rental property in Orlando is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Orlando housing market 2021 forecast for answers on why to put resources into this market.
Let’s talk a bit about Orlando the surrounding metro area before we discuss what lies ahead for investors and homebuyers. Orlando's housing market is expanding at a great pace and people from all over the country and even beyond are either choosing to move permanently or invest here. Orlando has once again proved to be one of the best places to invest in real estate in Florida.
Owing to its picturesque beaches, rapidly improving quality of life, booming population, and economy, Orlando is proving to be a secure real estate investment destination for not only local but also international investors. Compared to other cities with competitive real estate markets, investing in Orlando real estate makes more sense since it has experienced a 14.6% increase in the median home price (all residential) since November 2019.
Not to mention, the Orlando region is booming in terms of both population and jobs. From the years 2016-2019, Orlando achieved an 11% growth rate, according to the Orlando Business Journal. According to Orlando Weekly, the Central Florida region will have 5.2 million people calling the area home.
The city is ranked #3 on the AdvisorSmiths report analyzing the best cities with job growth. There is a great demand for rental properties due to the high proportion of renters (65.29%). Moreover, Orlando's real estate prices remain highly affordable with a median value of $275,000 (as of Nov 2020). We can say that this is true for the entire Florida real estate market.
According to Zillow, the first-time buyers in the U.S. looking for an affordable home without much competition may have the best luck in the State of Florida, with Orlando real estate market ranked high in the “Top 10 best cities for first-time homebuyers.” Compared to saturation in similar markets in other cities like New York, Orlando has all the indicators of a flourishing growth in the coming years.
Top Reasons To Invest In The Orlando Real Estate Market
Let’s take a look at the number of positive things going on in the Orlando real estate market which can help investors who are keen to buy an investment property in this city.
Increasing Foreign Investment in Orland0
International investors from all major countries of the world are exhibiting their interest in the Orlando real estate market because of its beautiful scenery, improving quality of life, and ambient weather. It is also extremely popular for foreign investments because of its intercultural connectivity with people from various Latin American countries. In addition to this, many Chinese, as well as Spanish and Middle Eastern investors, are also attracted to Orlando, FL for real estate investment.
Dramatic Population Growth
Owing to people from various walks of life and demographic differences choosing to reside in the suburbs of Orlando, this city is going through major population growth. During the last 3 years, the population in Orlando has been growing at a rate of 7.2% which has never been experienced by this city before. The current population of Orlando in 2020 is 1,964,000, a 2.13% increase from 2019. The population of Orlando in 2019 was 1,923,000, a 2.18% increase from 2018.
Orlando is rapidly becoming a central attraction for businessmen, students, and small families owing to its growing trend of upward life mobility which makes lures investors to invest in the Orlando real estate market. Another reason for the growing economy and population expansion in Orlando, Florida, is the developed transportation infrastructure which makes traveling between destinations more convenient. Generally, Florida has an efficient transportation network that complements its tourism growth as well.
Orlando's Increasing Job Opportunities
While improving the Orlando real estate market and flourishing tourism are two of the most important reasons behind Orlando’s economic stability, these two industries have a lot to gain from the successful economy. This expansion is related to the growing population and job opportunities in this city, this translates to more rental income and tourism leading to a better economy for the city. Orlando is the new hub for many young professionals especially those with various types of technological expertise, including engineers and IT professionals.
This city has experienced annual job growth of around 4.4% and is also one of the fastest-growing metro areas in the country. The city is also set to experience its highest job growth rate in the 10 years to come. A market with high job growth is a great market for real estate investment as well. Orlando metro area is adding STEM jobs at a faster clip than the Bay Area metros. The Orlando–Kissimmee–Sanford MSA was ranked among Forbes’ 15 Best Big Cities for Jobs. They cited Orlando’s science, technology, engineering, and mathematics (STEM) job growth in recent years as one contributing factor.
Orlando's Rental Market
Thanks to a strong economy, Orlando's rental market continues to boom. It is consistently named as one of the best rental markets in the nation and the #1 place in Florida to buy a profitable rental property. While tourism is one of the driving forces in the local economy, Orlando is also an important high-tech hub. Since job opportunities in Orlando are growing, people from all over the country and even some other countries are choosing to move here.
This directly translates to a boom in rental income as there is a resultant increase in the demand for both residential and commercial property rentals, and this means more steady income for investors in Orlando real estate market. The soaring rental rates are good signs for real estate investors. Around 46% of the households in Orlando, FL are renter-occupied.
Current Rental Market Trends
The average size for an Orlando, FL apartment is 962 square feet with studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.
About 60% of the apartments can be rented for $1,500/mo or less. 26% of the apartments fall in the price range of $1,501-$2,000, and only 8% are as expensive as $2,000/mo.
As of December 2020, the average rent for an apartment in Orlando, FL is $1439 which is a 0.63% decrease from last year when the average rent was $1448, and a 0.21% decrease from last month when the average rent was $1442.
- One-bedroom apartments in Orlando rent for $1257 a month on average (a 0.4% decrease from last year).
- Two-bedroom apartment rents average $1490 (a 1.88% decrease from last year).
- The average apartment rent over the prior 6 months in Orlando has decreased by $18 (-1.2%).
- One-bedroom units have decreased by $27 (-2.1%).
- Two-bedroom apartments have decreased by $34 (-2.2%).
Flexible Tax Laws
Investing in Orlando's real estate market can help investors to lighten their taxes as Florida is one of the few states with no personal income tax. Its flexible tax laws are a blessing for investors especially in this climate of a booming economy. Tax laws in Florida are considered to be the 4th friendliest laws in the country which is why a significant number of businesses choose to be based here.
Florida does impose a 5.5 percent corporate income tax. Orlando, owing to its friendly tax environment and affordable real estate can prove to be a vital opportunity for up and coming start-ups. Entrepreneurs and small business owners can rent showrooms and shops on better terms than most other cities and states.
Orlando is a Top-notch Tourism Center
Orlando has been boasting of economic stability since the beginning of the year 2018, and tourism growth and opportunities are some of the main reasons for its smooth expansion. Considered to be a “Theme-Park Capital of the World,” Orlando attracts most of its tourism due to the presence of Universal Studios as well as SeaWorld, and the most popular, Disneyland. In addition to this, Orlando’s beautiful beaches and warm weather also attracts thousands of tourists every year.
Orlando, FL Real Estate Investment Market
Maybe you have done a bit of real estate investing in Florida but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Speaking about
Orlando's real estate market has a high potential for growth considering the current state of its economic expansion and population influx. This market currently has an ideal environment for US investors in housing properties, especially for turnkey real estate investments.
Good cash flow from Orlando rental property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Orlando in a growing neighborhood would be key to your success.
When looking for real estate investment opportunities in Orlando or anywhere in the country, the generally accepted standard is to purchase a property that will give you a modest but minimum of 1% profit on your investment. An example would be: at $120,000 mortgage or investment cost, $1200 per month rental. That would be the ideal equation for example.
Even with rent increases, buying a $500,000 investment property in Orlando is not going to get you $5000 per month on rent. When looking for the best real estate investments in Orlando, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.
Here are the ten neighborhoods in Orlando having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
- Shiloh / Dummit Grove
- Boggy Creek Rd / Dowden Rd
- S Semoran Blvd / Curry Ford Rd
- E Colonial Dr / Barton Dr
- Manatee St / Hoffner Ave
- S Goldenrod Rd / Curry Ford Rd
- U of Central Florida / N Tanner Rd
- Omara Ct / S Goldenrod Rd
- Conroy Rd / Millenia Blvd
- Dorado Ave / San Juan Blvd
Florida is a great place to invest in real estate with several affordable and growing markets. The state will continue growing by more than 300,000 people a year and will top 22 million residents in 2022, according to a report posted online by state economists. That's equal to adding a city slightly larger than Orlando every year.
The report estimated the population on April 1, 2018, at 20.84 million, with it increasing to 21.2 million on April 1, 2019. It is forecast to hit 22.2 million as of April 1, 2022, and be at 22.8 million on April 1, 2024. The population increases will primarily stem from “net migration” as people move into the state, rather than births, which are largely offset by deaths.
Several Fortune 500 corporations call Florida home including World Fuel Services, Publix Super Markets, Auto Nation, Office Depot, Hertz, Fidelity National Financial, and Lennar Corp. With a diverse collection of industries supporting Florida’s economy, it further strengthens the drive for workers to want to live and work here. Those factors in turn create a strong demand for rental properties and increasing rental rates.
While there are investment opportunities in the Florida housing market, major metros are some of the most popular choices, like Jacksonville, Orlando, Miami, St. Petersburg, and Tampa. The real estate in Tampa Florida has been estimated to grow rapidly during 2020. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment. The Tampa real estate market has been seeing constant development for the last two years, a trend that does not seem to be stopping any time soon.
Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth. In addition to this, many entrepreneurs and small businesses are also making their way to Tampa for the search for better prospects and lesser expenses for running their start-ups. Acquiring residential spaces is one of the earliest priorities for such professionals when they move here.
Tampa, FL has a very diverse economy with financial services, STEM, health care, research, education, tourism, beaches, and military bases all making significant contributions to jobs and growth. These factors make the Tampa housing market a hot destination for real estate investors in 2019.
You can also invest in another hot market in Ocala, Florida. Ocala is an affordable real estate market for investors who can still reap a decent return on investment. The area has recovered from the Great Recession, and several factors will insulate it from a future downturn. The Ocala housing market is buoyed by several near recession-proof industries.
It is quite affordable for investors compared to the rest of Florida markets like Tampa where the median home value is $221,500. The median home price in Ocala in 2018 was around $150,000. You can buy several homes in the Ocala FL real estate market for the price you would of one mid-market condo in the Miami real estate market.
Another market that we suggest is the housing market in Lakeland, Florida. The Lakeland housing market presents the perfect balance of currently affordable real estate for buyers and future growth. We can expect the population of the area to grow rapidly, and the renting population will grow even faster. The time to buy real estate in Lakeland is now.
While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten. This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Orlando.
Consult with one of the investment counselors who can help build you a custom portfolio of Orlando turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Orlando.
Not just limited to Orlando or Florida but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Orlando turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
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Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Market Prices, Trends & Forecasts
Reasons to Invest in Orlando Florida