What is the market for Orlando real estate in 2022? Orlando is one of the biggest cities in the state of Florida, the US. The city is very famous for its tourist attractions. Yes, Orlando is known also as the city of theme parks since more than 12 parks are located here.
You can even name the most popular ones; Walt Disney World Resort, the Wizarding World of Harry Potter, Sea World, the Universal Orlando Resort, and many more. The metropolitan area of Orlando is indeed quite far from those objects. However, it is recently developed with many new projects
Being the center of theme parks makes Orlando have many visitors. The number of visitors indeed significantly decreased during the COVID-19 pandemic in the last 2 years. Now, in 2022, it seems that the condition will go back to normal.
It is recorded that the oldest attraction in Orlando is Gatorland or the crocodile park. It is averagely visited by around 52 million visitors every year except during pandemics.
Sure, it is reasonable that the Orlando Real Estate Market is developing rapidly. The development of tourism tends to influence other sectors including business. Many people rent their houses as homestays or inns. Besides, there are also food and souvenir sellers who look for places to develop their business. That’s why investing in properties in Orlando is really promising.
A Brief Overview of Orlando Real Estate Market
From 2021 to 2022, the annual price list of real estate in Orlando increased by 20%. The percentage is much higher mainly if you compare it with other cities in Florida. One of the main reasons why the increase is significant is because of the big number of newcomers and visitors to the city.
It is important also to know that the tax and living cost in Orlando is quite high, even quite similar to California. However, it doesn’t stop them from coming as the crowd in the city is undeniably very attractive. Many newcomers currently also tend to go to areas beyond the Orlando metro population. The living cost of the area tends to be lower as well as the real estate price is also more affordable. It makes Orlando a city with the most rapid development in the state.
In addition, aside from the theme parks mentioned above, there are some other attractions to attract visitors to come. They include golf courses, premium shopping centers, culinary centers, and many more.
You can say that tourism is the biggest business in Orlando. But then, it strongly influences other sectors to grow up including real estate. Furthermore, the city is also recently well-known as the center of industry and technology with the biggest research center in the US. It’s getting more attractive, isn’t it?
History of the Orlando Real Estate Market
Knowing the history of the Orlando real estate market is very essential to know the possible change in the future. For the city, most investors use Freddie Mac House Price Index (FMHPI). FMHPI is not only calculating one certain city but some cities in one area. For Orlando, the index calculates it together with Kissimmee and Sanford. The results are as follows.
In April 2017, the HPI of Orlando-Kissimmee-Sanford was 179,30. Meanwhile, the HPI of those cities in April 2022 is 316,30. Therefore, the change in housing price in 5 years in percentage is 76.3%, The change in housing price in a year is 27.0%, and the monthly change is 2.3%.
Another index to apply for Orlando Florida real estate is from Kiplinger. It analyzes the affordability of houses in Orlando and other real estate markets included in the top 100.
Based on the data, it is found that after the peak of the Real-estate cycle in May 2006, the average house price in Orlando decreased by 13.5%. Then, another peak of the Real-estate cycle happened in March 2012 when the average house price in Orlando increased by more than 102.0%.
The data also show that Orlando has an affordability index of 7 out of 10. It means that the metro area of the city is one of the most affordable places for real estate in the US.
Population and Growth in Orlando
Among the biggest cities in the US, the population growth in Orlando is the second-fastest. There are around 1000 new citizens to come every week. Most of them come from other cities and towns and Florida. But interestingly, Orlando is also a magnet for people from other states or even abroad.
Sure, being the city of theme parks becomes the main reason why the city is very popular in the realm of immigrants. They come with new hopes for better jobs or chances to build and develop their businesses. It is supported by the fact that many new businesses like food stalls and restaurants are opened around the tourist attractions.
Sure, it also becomes a chance for investors to buy new properties and gain money from them. Many of them prefer renting houses while some others decide to sell them later when the price has been increased. Well, they just want to take a chance of profit as house prices in Orlando indeed always significantly increased.
Aside from that matter, there is some important data about population and growth in Orlando that is related to property investment.
First, around 2.4 million people live in the metropolitan area of Orlando while 308.000 others are in the suburbs. In addition, the metro area of Orlando consists of 4 regencies; Orange, Seminole, Lake, and Osceola. Based on the latest Census, the population in the city has increased by 69.300 people in only 10 years.
Second, from 2021 to 2022, the population growth in the metro area has increased by more than 1.4%.
And third, the Orlando economic companion predicts that the city may increase its citizens to 1,500 people per week. The population may reach 5.2 million in 2030.
Orlando Real Estate Market
How is the Orlando Real estate market in 2022? Seeing the data from some years before 2022 in one decade, the average house price in Orlando increases by more than 25% from year to year. The supplies are fewer than demands making the average price higher up to $370,000 in April 2022. In percentage, the increase is 30.1% compared to the average price in the same month in 2021.
Based on the report from Zillow Housing Price Index, the median house listing in Orlando is $367,000 and per square, the average house price is $225. The number is calculated with an assumption that the market days are 24.
Meanwhile, the selling price ratio toward the list is 100.95%, meaning that a house to sell is priced a little lower than the demand. Furthermore, of 98 different neighborhoods in Orlando, Lake Nona Central is the most expensive with an average price of $705,500. On the other hand, the most affordable one is South Semoran, at $167,000.
Orlando area real estate is also said to be one of the best places for property rentals in 2022. It is based on some indicators such as cash flow, affordable properties, population growth, and the job market. Even when seeing the statistics, the trend is shown to be positive throughout the year.
Sure, being the heaven of man-made attractions is one reason. But more than that, Orlando has some other reasons why people prefer living in the city. Florida, in general, doesn’t collect taxes from its people. The climate is also warm and refreshing, making it feel more comfortable for them.
So, here are some primary market statistics for home rentals in Orlando. First of all, the average rental price in the city is $2,190 for a house with 3 bedrooms. Second, about 55% of houses in the city are for rentals and the average price has increased by 16% from 2021 to 2022.
Fourth, some neighborhoods are known for their low cost of rentals. They include popular areas such as Spring Pines, Rosemont North, and Carver Shores with an average renting price of $1,200 per month.
Lastly, some neighborhoods are considered the most expensive ones with the average rent in Orlando of $3,829 per month. Those neighborhoods are South Eola, Kirkman South, and Baldwin Park.
Orlando Real Estate Market Forecast
So, how about the forecast of the Orlando real estate market for the rest of 2022 and 2023? Many indexes show that the market of real estate in Orlando continues the trend at the beginning of 2022. Most predictions state that the market is majorly for sellers and the city will still be one of the hottest markets for real estate investments.
If taking a look back to records made by Zillow, typical Orlando houses were valued at almost 194.8%. This reflects that the value is around the percentile of 35 to 65. As information, Zillow House Value Index or ZHVI represents the entire stock of houses, not only those that are enlisted or sold in certain months. In addition, the typical Orlando house in the mid-year of 2022 is $365,588.
In the last 12 months, the significant rise in house prices in Orlando considers the city one of the most demanded real estate markets by investors. Limited stocks of houses in the city make buyers compete more tightly. Consequently, prices are getting higher and it is more profitable for sellers.
Based on the data above, here are some predictions of market situations in Orlando at the beginning of 2023.
First, recently, values of Orlando housing have been raised to 30.1% and it will continue to increase for the next 12 months, counted from the mid of 2022.
Second, the home values in Orlando’s Metro area, Orlando-Kissimmee-Sanford, will raise to 17.5% in April 2023. Meanwhile, the typical home price in that area will be around $376,474. That percentage is almost similar to it for other cities in Florida such as Orange County, Seminole County, and Lake County.
Orlando Real Estate Market FAQs
- Are house prices dropping in Orlando?
Based on Orlando real estate news, instead of dropping the average house price increased significantly from 2021 to 2022. Based on the report from the Orlando Regional Realtor Association (ORRA), the median home price in April 2022 was $438,880. The number increased from the home price in the same month of last year with a rising percentage of 21.1%.
The trend is predicted to continue like that at the end of 2022 and the beginning of 2023. Therefore, buying a house in the city for investment is recommended now.
- Is Orlando a buyer or seller market?
In the last 5 years, Orlando has almost always been a seller market. Based on the latest report, in May 2022, around 100.24% of houses in the city were sold. The demands are higher than supplies, meaning that the city is currently a seller’s market. It is named the seller’s market as more people look for houses to buy than the homes provided.
- Is it a good time to buy a house in Orlando?
Generally, 2022 is a good time to buy a house in Orlando. It is not because Orlando’s housing prices have decreased but because of the tendency for them to increase in the future. Many predictions including them from Zillow state the increase of Orlando houses at the end of 2022 and the beginning of 2023.
Zillow reported that in the 12 months until April 2023, the increase of the average price of homes in Orlando is around 30.1%. It is quite significant and it will be beneficial for property investors.
- Why is Orlando real estate so expensive?
Orlando is one of the popular cities not only in Florida but also in the US. The number of immigrants is high with an average number of newcomers of around 1000 people per week. That’s reasonable. Orlando is famous for its numerous theme parks including popular ones like Walt Disney World Resort and the Wizard World of Harry Potter.
Those people come for a high number of jobs and chances for business. Besides, Florida doesn’t require taxes for its people. In addition, comers are mostly from areas with high levels of taxes like California. Those internal factors cause high Orlando growth significantly.
