Orlando Investment Property Market

Orlando Investment Property Market Overview

Orlando is the 26th largest metro area in the U.S. and spans 4 counties with an estimated population of 2.2 mm people. The market has experienced significant recovery since the recession with home values increasing nearly 65% since 20121. However, home values still remain 35% below the prior peak and are expected to increase an additional 9% by 20192.

Strong HPA Forecasts and Highest Household Growth Market in the U.S.

In addition to strong home price appreciation (HPA) forecasts for the Orlando market, Orlando is experiencing the highest household growth in the U.S. In 2015, households grew by 3.6%, which compares to the U.S. average of 1.0% year-over-year. In conjunction with more people moving to the area, employment is also increasing. Orlando ranks #5 in terms of employment growth across the U.S. - Orlando employment increased 4.2% in 2015 vs. the U.S. average of 1.7% over the same period3.

Another factor that makes Orlando a great Single-Family Rental (SFR) investment market, is that it has above average gross rental yields relative to other U.S. markets. Gross yields in Orlando averaged 10.4%, which is well above the national average of 9.2%4.
  • HPA and rent growth: Rent growth and home price appreciation expected to increase in parallel
  • Gross yields: Above average relative to other U.S. markets
  • Steady tourist attraction: Disney and the surrounding ecosystem provide over 100,000 people with jobs and continue to bring economic stability to the region
  • High negative equity rate: 23.6% of homes in the Orlando market have negative equity, which is higher than the national average5
  • Orlando has over 100 parks and 21 community centers offering athletics, camps and social programs.
  • The Orlando area had more than 59 million visitors in 2013.
  • 1 Zillow
  • 2 John Burns Real Estate Consulting, March 2016
  • 3 John Burns Real Estate Consulting, March 2016
  • 4 John Burns Real Estate Consulting, March 2016
  • 5 Findthehome.com, January 2016

Real Estate Investment Insights

Investment Style: Balanced
While each property will differ, this market is likely to have properties that provide a blend of yield and appreciation.
Inventory:
Home Value *
$200,500
$193,800
National Avg
Home Value Growth (YoY)
10.7%
6.8%
National Avg
Rent **
$1,387
$1,403
National Avg
Source: Financial data from Zillow includes single family, condo & cooperative homes, updated on 12/31/2016
Job Growth (YoY)
4.5%
1.6%
National Avg
Household Growth (YoY)
3.5%
0.9%
National Avg
Estimated Months of Resale Supply
2.6%
4.0%
National Avg
Household Income
$51,800
$57,943
National Avg
Supply, Demand & Affordability data includes single family homes only, updated on 1/13/2017
  • Arrows indicate the directional change since the last update. No arrow indicates that there was no change in the data or no previous data is available.
  • * Home Value: includes all types of housing, including primary resident, condos, investment properties, etc.
  • ** Rent: includes all rental properties, including Single-Family Homes, multi family units, etc.
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