2017 Market Overview
Orlando Real Estate Market Overview
Orlando is the fourth largest city in the state of Florida and the 73rd largest city in the United States. Located in Florida’s “sun belt” region, this city is known for its warm climate, beautiful beaches, and even more so for its world famous amusement parks, entertainment, and attractions.
With a combined population of 3.3 million residents, Orlando’s real estate market is fueled by job seekers, baby boomer retirees, and students who want to live in a “cheap and cheerful” area that offers a high quality of living at a reasonable cost. For investors looking to invest in real estate, these are good signs.
This area has produced some impressive results for real estate investors already and this trend is likely to continue into 2018. To date, property prices are up, appreciation rates are increasing steadily, and the cost of living remains below the national average.
More Reasons To Love Orlando:
- Forbes reports that 60 million people visited the Orlando area in 2015, making it the most visited tourist destination in the country.
- The population in Orlando has grown 41% since the year 2000. To date, Metro Orlando houses over 2.3 million residents.
- Rents grew by 3.4% in the last 12 months, which is higher than the national and state levels. Employment is likely to grow 4.2% a year through 2017, according to Moody’s. Foreclosure laws have helped keep home prices significantly below their last peak but rates are rising.
- Orlando’s employment growth is among the best in the U.S. with 173,900 jobs created since the recession and a growth rate of 4% per year.
- Orlando’s population has grown 41% since the year 2000 and is expected to grow an additional 1.5% in 2017, which means the demand for housing is likely to increase. Orlando Medical City boasts a $7.6 billion economic impact and will create 30,000 jobs.
- Amazon Fulfillment recently opened, bringing 4,000 jobs to Central Florida, the current leader in job and population growth in the state.
- Orlando was recently named the “hottest” single-family real estate market among the 50 largest US metro areas (Ten-X Research’s quarterly report). According to the report, Orlando has been elevated to the nation’s top market position due to limited supply, rising home values, ample jobs and income growth, especially in the leisure/hospitality sector.
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Why Invest Here?Orlando offers great opportunities for buy and hold real estate investments today. This is Orlando offers great opportunities for buy and hold real estate investments today. This is especially true for investors looking to invest in one of the most quickly growing economies in the nation while prices are still below their pre-recession peaks.
Orlando Trends & Statistics 2017-2018
In this section, you’ll learn about the top factors that make Orlando one of the strongest real estate markets of 2017, including job growth, population growth, and equity growth potential. Explore Orlando’s housing market, population, and employment trends in the tabs to learn more.
Orlando real estate prices are more expensive than other U.S. markets today
- Today the median price of three bedroom single family homes in the Orlando metro area is $188,000. This is just slightly higher than the national average of $187,000.
- In the Orlando neighborhoods where RWN members invest, the median price of three bedroom homes in January 2017 was $123,000. This is 35% lower than the national average of $187,000.
- This shows us that while property values in Metro Orlando are more expensive than other U.S. markets today, it’s still possible to purchase single family homes below the national average.
In some Orlando neighborhoods it’s possible to generate strong monthly income
- In January 2017, the median monthly rent for three bedroom homes in Orlando was $1,357, which is 0.72% of the purchase price of $188,000. This is just slightly below the national price-to-rent ratio of 0.74%.
- In the neighborhoods where RWN members invest, the median monthly rent for three bedroom homes was $1,121, which is 0.92% of the $123,000 purchase price.
- This shows us that it’s possible to generate strong monthly income in Orlando but only in some neighborhoods.
Orlando home values are appreciating at a faster rate than other cities
- In January 2012, the median price of three bedroom homes in Orlando was $113,000. Over the following five year period (Jan. 2012 to Jan. 2017), three bedroom homes in Orlando appreciated by over 60%. Comparatively, on a national scale, three bedroom homes increased by only 28.97% during the same six year period.
- This shows us that home values in Orlando are appreciating much more quickly than other markets across the nation today.
Orlando rents are also rising much faster than other cities
- In January 2012, the median rent of three bedroom homes in Orlando was $1,139. Over the next six years (Jan. 2012 to Jan. 2017), Orlando rents have appreciated by over 19%, versus 14% nationwide.
- This shows us that rents in Orlando are rising at a much faster rate than other U.S. cities today.
Orlando’s population is growing very quickly
- Since 2010, Orlando’s population has increased by more than 14%. During the same period, the national population grew by only 3.93%.
- Clearly, Orlando’s population is growing at a much faster rate than other U.S. cities today.
Orlando’s population is growing very quickly
- Over the last few decades, leaders in the region have been working diligently to diversify Orlando’s economy, creating high-salary careers for residents in cutting edge industries including as digital media and technology, life sciences and modeling, and simulation and training.
- In the past year, the number of jobs in Orlando has grown by more than 4%, versus the U.S. annual job growth rate of 2.31%.
- In addition to low property taxes and insurance, there is no state income tax. Add warm weather and exceptional health care and you can see why so many companies are relocating to Orlando.
Orlando is Growing Rapidly
- Since 2010, Orlando’s population has increased by more than 14%, versus 4% nationwide. Job growth has followed the population increase by growing more than 4%, while the national annual job growth rate was only 2.31%.
- The combination of these factors is a positive indication that the demand for housing will continue to increase, keeping sales elevated and driving further price gains in 2017 and beyond.
- The median price of a fully renovated 3 bedroom R.E.A.L. turnkey investment property available through Real Wealth Network partners is only $111,400 vs. $143,000 metro-wide.
Orlando Home Prices & Rents are Rising Quickly (with few signs of stopping)
- In the last five years, three bedroom homes in Orlando have appreciated by over 60%, versus 29% nationwide. During the same period, Orlando rents have also appreciated by over 19% with a weaker national appreciation of only 14%.
- This shows us that home values and rents in Orlando are appreciating much more quickly than other markets across the nation today. Considering Orlando’s rapid population and job growth, it’s likely this trend will continue moving forward.
- The median rent of a fully renovated 3 bedroom R.E.A.L. turnkey investment property is $1,035, which is 0.93% of the median purchase price. The national average is only 0.74%.
Orlando is Still Affordable & Cash is Flowing
- Although property values in Metro Orlando are more expensive than many other U.S. markets today, in some neighborhoods, it’s still possible to purchase affordable homes that will generate strong monthly cash flow.
- It’s also important to note that Orlando home prices are still well below their pre-recession peak, which suggests that prices have not reached bubble levels and will continue to grow in the coming years. Given the rapid growth in jobs and population it’s likely that rents will continue to rise as well.
- The median home price for 3 bedroom homes in Orlando increased 5.93% between January 2016 and January 2017 versus 0.82% between January 2012 and January 2013.
October 27, 2017
Why Orlando? The Orlando real estate market is bustling with life, population growth, jobs, and a strong retail environment. We’ve heard so much about…Read More