Orlando Real Estate Market Update July 2021 • Benzinga

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The Orlando – Kissimmee – Sanford metro area is always a bustling place for visitors as well as residents and the Orlando real estate market is booming. With its popular tourist destinations such as Walt Disney World Resort and Gatorland, luxury golf courses, restaurants and countless other attractions and resorts, there really is something for everyone. The good weather and endless activities along with affordable homes and growing employment opportunities make this a sought-after location.

Current Orlando Real Estate Market Conditions

  • House prices and rents have seen significant increases over the past year.
  • The number of households has increased from year to year and the supply of housing is experiencing a serious shortage.
  • Builder sentiment and construction jobs increased, while construction costs continued to rise.

Buy a home in Orlando

Orlando home prices

Median home value in Orlando: $ 310,000

National average: $ 371,000

In the Orlando metro area, home prices were up 12.7%. Although home values ​​are not as high as the national average, median prices in Orlando have increased by $ 126,000 over the past 5 years and continue to trend higher. Nationwide home prices saw a massive 22.4% year-over-year increase. This is impressive for the real estate market as a whole.

Accommodation supply in Orlando

Housing supply across the country is at an all-time low. Nationally, the housing stock is only 1.1 months. In recent years, a supply closer to 3 months has been typical. The Orlando market only has a 0.7 month supply. There is an extreme shortage of homes for sale. This means that Orlando, like the rest of the country, is in a seller’s market. When there is such a housing shortage and so many people are looking to buy, house prices go up and sellers are able to get a lot more for their home than they ever thought possible. So now is the perfect time to sell and make a big profit. However, buyers will find it difficult to buy with so much competition and so little inventory in the market.

Buying rental property in Orlando

While the supply is low and the demand is high for the purchase of homes, some buyers decide to wait for the current market and to rent. Like home prices, rental prices nationwide and in the Orlando metro area have also seen an increase. Now the city has a competitive buying market as well as a competitive rental market.

Orlando median rental price: $ 1,636

National average: $ 1,704

A steady rise in rental prices over the past 5 years is good news for investors. Their investment properties continue to increase their profits every year. In Orlando, rental prices have risen 5.6% year over year and are up nearly $ 400 in recent years. Nationally, rental prices have increased 3% year over year and are up nearly $ 300 since 2016. Rental prices are still on an upward trend, which means that now is the right time to enter the rental market as an investor. You’ll pay more to buy a home right now, but the rental price hike can be worth it.

Orlando Rental Deals

Orlando Rental Vacancy: 8.1%

National average: 6.8%

The national average for vacant rental units is 6.8% and has remained there fairly steadily in recent years. Vacancies in Orlando are slightly higher, but the rental market here is always fluctuating, which is normal in popular tourist and college towns. For investors interested in purchasing rental property, they would do very well in this area. The vacancy rate has fallen from 1.9% to 8.1% since the same period last year. With a falling vacancy rate and higher rental rates, the rental market can be a smart investment opportunity.

Orlando foreclosures

Orlando foreclosure rate: 0.5%

National average: 0.3%

Seizure rates are at their lowest. Both nationally and in the Orlando area, foreclosure rates have declined over the past 5 years and have fallen 0.1% year over year. Now, foreclosure rates have fallen to next to nothing. With such a limited supply of homes on the market, foreclosures have received more attention. Buyers and investors have landed great deals on foreclosures and have renovated or reversed them. Now it’s harder for investors to find great opportunities with foreclosures, but it’s great for the real estate market. Fewer dilapidated and distressed foreclosures helps increase the value of nearby homes.

Orlando neighborhoods

One of the more expensive neighborhoods in Orlando is Bay Hill. The median price of a home here is $ 705,783 and rents average $ 3,264 per month. This suburb is mainly made up of single family homes with 3 to 5 bedrooms and townhouses. The homes here are well maintained and tend to hold their value. While the vacancy rate here is high at 15%, almost 11% is seasonally occupied. Bay Hill residents have jobs as professionals and executives, enjoying a luxury lifestyle of luxury cars and country clubs. This area is in the top 15% of the richest neighborhoods in the United States.

One rural area of ​​Orlando is Christmas and Bithlo, where the median price of homes is $ 305,958 and rentals average $ 1,896 per month. Homes here consist of medium to large sized mobile homes and single-family homes built in the 2000s. Vacancies are lower, at 7.1%, which means this is a growing area. request. These upper middle class residents of Christmas and Bithlo hold a variety of management, sales, service, manufacturing and support jobs.

City Center is a popular suburb of Orlando. The median price of homes here is $ 351,245 and rentals are around $ 1,700 per month. Apartment complexes and high rise buildings as well as mid-rise single-family homes constitute the real estate here. Most of the buildings were built in the 2000s and are known for their mid-size apartments. Vacancies are high in this field – a whopping 22.1%. This could be due to a new construction that is not yet occupied, a vacancy problem or a tourist hotspot. Most of the places here are occupied by tenants, with 60% of the residents being young professionals living alone. City Center is downtown Orlando, with its shopping, nightlife, restaurants and theaters.

Orlando’s economic situation

After a sharp increase in unemployment resulting from the pandemic in 2020, many cities are finally bringing unemployment figures back to pre-Covid figures. With businesses reopening at full capacity, the lifting of travel restrictions and more employment opportunities, the numbers continue to drop and are approaching normal.

Orlando unemployment

Orlando unemployment rate: 5.4%

National average: 6.1%

While Orlando’s unemployment rate isn’t much lower than the national average, it’s worth mentioning that the metro area is much more advanced than other markets. The unemployment rate in Orlando soared to 22.6% at its peak. Nationally, the average was only 14.8% at its highest level. In just 1 year, Orlando has succeeded in lowering its unemployment rate by 17.2%. Orlando’s economy has made a strong comeback over the past year, increasing jobs by 50,600 year over year.

Orlando’s Top Employers

The largest employers in the Orlando metro area are in the recreation and hospitality industry. Walt Disney World Resort employs 75,000 people. Universal Orlando Resort employs an additional 26,000 people. Jobs here range from hostesses, waitresses and talents to housekeepers, ride operators and transport workers. Such large and popular resorts need thousands of people to provide all aspects of the service.

The health care industry is the second largest employment sector in Orlando. AdventHealth Orlando and Orlando Health each employ approximately 21,000 people. AdventHealth regularly hosts recruiting events throughout the year to provide opportunities for qualified candidates. Healthcare companies are always looking for qualified people, and this is a great industry to jump into.

Publix Supermarkets Inc. is the second largest employer in Orlando and the surrounding area. This supermarket chain employs nearly 20,000 workers. With 31 branches in Orlando, Publix is ​​the largest employee-owned supermarket and a go-to for all your food and pharmaceutical needs.

The basics of the Orlando real estate market

After a difficult year due to the pandemic and its aftermath, the Orlando real estate market is back on track. Housing and rental prices are on the rise and continue to rise, the number of households has increased and employment opportunities are everywhere. The extremely low supply of available accommodation is also impressive for Orlando – it is certainly a popular and in-demand city full of sun and activities.

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