There are several reasons why investors love Orlando. Nearly 70 million people visit Orlando each year, drawn by the area’s world class theme parks like Disney World and Universal Orlando, dozens of golf courses, and premium shopping outlets.
While tourism and conventions are big business in Orlando, the city is about a lot more than just fun and games. Orlando is a major industrial and high-tech center with one of the largest research parks in the country.
Economic growth in the region leaves many cities across the U.S. in awe. Other parts of the country watch enviously as people come to Orlando for the seemingly endless opportunities and great quality of life that can only be found in Central Florida.
Read on to learn why Orlando is can be a smart investment to consider in 2020 and beyond.
Located in Orange County, Central Florida, Orlando is among the fastest growing cities in the U.S., according to a recently released report from Fox 13. In fact, more than 60,000 people moved to Orlando in the past year alone, enough to fill the city’s Camping World Stadium where college football bowl games are played.
Key Population Stats:
The City of Orlando is home to nearly 300,000 people while about 2.5 million residents live in the metropolitan area of Orlando.
Four counties make up the Orlando metro area: Orange, Seminole, Lake, and Osceola.
Forbes ranks Orlando, Florida as the 23rd-best place for business and careers and the 6th-best place in the country for job growth.
According to U.S. News & World Report, the average annual salary in Orlando is below the U.S. average due to the high number of low-paying service and hospitality jobs. That’s good news for investors, because these types of jobs help keep the Orlando economy strong and the demand for rental property high.
Key Employment Stats:
GDP of Orlando (including the neighboring cities of Kissimmee and Sanford) is more than $133 billion, increasing by more than 30% over the last ten years.
Job growth in Orlando was 3.7% last year, making the Orlando metro area #1 in the U.S. for employment growth over the past 12 months, according to Forbes.
The Orlando Business Journal reports that over the past three years job growth in Orlando was 11% with nearly 129,000 new jobs added to the economy.
Average employment in Orlando is projected to grow by 19% by 2030, nearly double the rate of the U.S.
Metro Orlando is home to the seven-million-square-foot Orange County Convention Center with nearly 480,000 sq. ft. of meeting rooms and more than two million sq. ft. of exhibition space, making it the second-largest convention venue in the U.S.
Creative Village Innovation District is a 68-acre mixed-use development on the west side of downtown Orlando providing residents with paths to education and housing while giving businesses a place to expand with a quality workforce.
The 1,027-acre Central Florida Research Park is adjacent to the University of Central Florida and home to more than 100 companies employing thousands of people.
Major colleges and universities in Orlando include University of Central Florida, Florida A&M University, Florida State University, and Valencia College.
Nearly 36% of the people in Orlando 25 years or older hold a bachelor’s degree or an advanced degree, according to the Census Bureau.
Interstate 4 is Orlando’s main Interstate Highway, while SunRail provides commuter train service throughout the four-county Orlando metro area.
Orlando International Airport (MCO) is the second-busiest in Florida with airlines including Frontier, JetBlue, Lufthansa, and Virgin Atlantic providing service to nearly 50 million national and international passengers each year.
Real Estate Market
The housing market in Orlando recently reported a 6% year-over-year increase even though inventory dipped by about 1%, according to the World Property Journal.
One reason Zillow ranks the Orlando housing market as “very hot” might be because the market in Orlando performs well in any real estate cycle. MarketWatch agrees, recently ranking Orlando as the tenth-best market in the U.S. for protection against a real estate downturn.
Key Market Stats:
Median home value in Orlando is $245,600 according to Zillow (as of Oct. 2019).
Orlando home values grew by 4.8% this year and are forecast to rise another 4.2% over the next 12 months.
Median listing price of a home in Orlando is $290,000 while the median selling price is $244,800.
Median list price per square foot of a home in Orlando is $159, higher than the $150 per square foot median list price for the Orlando-Kissimmee-Sanford metro area.
Average days on market is 67.
During the listing period, 18% of the homes for sale in Orlando have a price reduction.
6.6% of the homes in Orlando have a negative equity vs. 8.2% U.S. average.
1.2% of the homes in Orlando have a delinquent mortgage vs. 1.1% nationally.
Attractive Renters’ Market
A just-released report from Orlando Weekly notes that Orlando is the #1 place in Florida to buy profitable rental property. While the soaring rental rates in Orlando are bad news for tenants, rapidly rising rents are music to the ears of real estate investors.
Key Market Stats:
Median rent in Orlando is $1,648 per month, about the same as the $1,649 monthly rents in the Orlando-Kissimmee-Sanford metropolitan area and higher than the median U.S. rent of $1,588 per month.
Average rents in Orlando increased by 3% over the last 12 months, according to RENTCafé.
46% of the housing units in Orlando are occupied by renters.
Only 11% of the units in Orlando rent for less than $1,000 per month.
In fact, 54% rent for between $1,001 and $1,500 per month and 28% rent for between $1,501 and $2,000 monthly.
Affordable areas of Orlando for renters include Mercy Drive, Rosemont North, and Seaboard Industrial where rents average $985 per month.
The most expensive neighborhoods in Orlando for renters are Downtown Orlando, Lawsona-Fern Creek, and Baldwin Park with average rents ranging between $1,722 and $1,827 per month.
The most recent Index shows that home prices in the Orlando metro area have increased by nearly 193% since Q1 1991. Over the past five years home prices have increased almost 53% and have grown by 2.61% from the last quarter.
Kiplinger also analyzes the affordability of housing in Orlando and the other top 100 U.S. markets:
Since the last real estate cycle market peak in May 2006, home prices in Orlando have decreased by 16.3%.
Since the last real estate cycle market bottom in March 2012, home prices in Orlando have increased by more than 95.7%.
Orlando has an affordability index of 7 out of 10, meaning the metro area is one of the least affordable places to own a home in the U.S.
Quality of Life
When Niche.com asked 1,400 residents of Orlando how they liked living in city, an astounding 86% rated Orlando as an “excellent” or “very good” place to live. The truth is, almost everything about Orlando makes it the perfect place for living, doing business, and investing in real estate.
For ADA assistance, please email email@example.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information you seek through an alternate communication method.