Orlando Real Estate Market 2020

Orlando Real Estate Market Trends & Forecast 2020

Data Sources:

• https://www.zillow.com/
• https://factfinder.census.gov/
• https://www.deptofnumbers.com/
• RealWealth Property Team Data

Orlando real estate prices are slightly less expensive than other U.S. markets today.

• In 2019, the median price of 3 bedroom single family homes in the Orlando metro area was $231,000. This is slightly above the national average of $222,000.
• In the neighborhoods where RealWealth members invest, the median price of 3 bedroom homes was $193,000 in 2019. This is 13% lower than the national average of $222,000.
• This shows us that property values in Orlando are slightly less expensive than many other U.S. markets today; in the neighborhoods where RealWealth members invest it’s still possible to get great deals.

In some Orlando neighborhoods it’s possible to generate monthly income.

• In 2019, the median monthly rent 3 bedroom homes in Orlando was $1,486, which is 0.64% of the purchase price of $221,000. This is slightly below the national purchase-to-rent ratio of 0.75%.
• In the neighborhoods where RealWealth members invest, the median monthly rent 3 bedroom homes was $1,300, which is 0.67% of the $193,000 purchase price.
• This shows us that it’s possible to generate solid monthly income in Orlando, especially in the neighborhoods where RealWealth members invest.
• Another important thing to consider: Orlando home prices are still 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 growing population it’s likely that rents will continue to rise as well.

Orlando home values are appreciating at much faster than other U.S. cities.

• In 2012, the median price of 3 bedroom homes in Orlando was $110,000. This means that, in the last 7 years (2012 to 2019), 3 bedroom homes in Orlando have appreciated by over 110%. This is 99% higher than the national average of 55% during this 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 2012, the median rent of 3 bedroom homes in Orlando was $1,136. This means that, in the last 7 years (2012 to 2019), Orlando rents have appreciated by over 30% versus 37% nationwide.
• This shows us, home values and rents in Orlando are appreciating slightly slower than the national average. However, considering Orlando’s rapid population and job growth, it’s likely homes and rents will continue to appreciate at a healthy rate.

Orlando’s population has grown 252% faster than the national average since 2010.

• Since 2010 Orlando’s population has increased by more than 20%. During the same period the national population grew by only 5.76%.
• This shows us that Orlando’s population is growing 252% faster than the national average. This means that Orlando is experiencing population growth at a much faster rate than most other U.S. cities today.

Orlando is creating jobs at twice the rate of the national average.

• In the past year, the number of jobs in Orlando has grown by nearly 4% versus the U.S. annual job growth rate of under 2%.
• This shows us that, in addition to rapid population growth, Orlando is also experiencing healthy job growth.
• Both of these factors combined should continue fueling demand for housing, which should keep sales elevated and drive further price gains in 2020 and beyond.
• 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 Still Affordable & Cash is Flowing

• In the neighborhoods where RealWealth members invest, the median price of 3 bedroom homes was $193,000 in 2019. This is 13% lower than the national average of $222,000.
• In the neighborhoods where RealWealth members invest, the median monthly rent 3 bedroom homes was $1,300, which is 0.67% of the $193,000 purchase price.
• This shows us that property values in Orlando are more expensive than many other U.S. markets today, but in some neighborhoods it’s still possible to purchase affordable homes that’ll generate strong monthly cash flow.

Orlando Home Prices & Rents are Rising Quickly (with few signs of stopping)

• In the last 7 years (2012 to 2019), 3 bedroom homes in Orlando have appreciated by over 110%. This is 99% higher than the national average of 55% during this period.
• During the same period, Orlando rents have appreciated by over 31% versus 37% nationwide.
• 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.

Orlando is Growing Rapidly

• Since 2010, Orlando’s population has increased by more than 20%. During the same period the national population grew by only 5%.
• This shows us that Orlando’s population is growing 252% faster than the national average. This means, Orlando is experiencing population growth at a much faster rate than most other U.S. cities today.

Orlando is creating tons of jobs.

• In the past year, the number of jobs in Orlando has grown by nearly 4% versus the U.S. annual job growth rate of under 2%.
• This shows us that, in addition to rapid population growth, Orlando is also experiencing healthy job growth. Both of these factors combined should continue fueling demand for housing, which should keep sales elevated and drive further price gains in 2020 and beyond.