Prosperous Time for Real Estate
2018 was a prosperous year for the real estate market in Florida. According to the Emerging Trends in Real Estate 2019 Report, published by the Urban Land Institute and PWC,
“Ten Florida markets have fully rebounded from the disruption caused by the global financial crisis.”
Most impressively is the Orlando housing market which made it in the top 5 best places to invest in real estate for the third year in a row!
Dramatic Population Growth
Of course, the first indicator of the Best Places to Buy Rental Property is a strong demand for housing and rental properties. Orlando has benefited from major population growth over the last 5 years. The city has been growing at an annual rate of 7.2% which is twice the national US average and is something that Orlando has never experienced before! This dramatic population growth is due to the city’s beautiful scenery, quality of life, and ambient weather.
Moreover, a high percentage of the population is between the ages of 25 and 44. This tells you the Orlando housing market is quickly becoming a central attraction for students, families, and young professionals. In addition, based on the Emerging Trends Report, people in the city are choosing to reside in the suburbs. All of these factors indicate strong demand for rental properties which, in turn, is luring property investors to invest in the Orlando real estate market.
Affordable Home Prices
One of the main things attracting property investors to the Orlando housing market is its affordability compared to the other places to invest in real estate. According to the Orlando Regional Realtor Association, “The rocketing rise in prices Orlando has seen over the past years stabilized this summer.” The year-over-year median price has increased between 6% and 7% which is low compared to other cities around the country where prices have been skyrocketing. This is good news for property investors as it means Orlando still enjoys a healthy and affordable real estate market.
More Foreign Investors
Investing in the Orlando housing market is not just appealing to domestic property investors from across the country, but to foreign investors as well! Florida is generally a top destination for international investors buying in the U.S. housing market. While Miami is the first option for these investors, Orlando comes in second. The Miami real estate market is about luxury investment properties, while Orlando is all about family and tourists looking for family-friendly vacation home rentals.
For that reason, more foreign investors are looking at buying rental properties in Orlando because of the good return on investment thanks to Disney and tourism. In fact, an article published by Forbes finds that substantial shares of buyers in the Orlando housing market are foreign buyers!
Strong Labor Market Growth
Tourism is not the only industry supporting the good return on investment of Orlando investment properties. Thanks to its friendly tax environment and affordable real estate, Orlando offers vital opportunities for up and coming start-ups. As mentioned, many young professionals are moving to the city and Orlando is becoming a new hub for them especially for engineers, IT entrepreneurs, and small business owners.
The city experienced an annual job growth of around 4.4% making it one of the fastest growing metro areas in the United States. Moreover, the employment growth rate in 2019 is expected to be well above the national rate in the Orlando Housing Market. Not only that, but the city is set to experience its highest job growth rate in the upcoming 10 years. As any successful real estate investor knows, markets with high job growth are the best places to invest in real estate!
The Bottom Line
Whether you’re a local or out-of-state real estate investor looking for your next investment or looking for you own dream home, now is the time to make your move in the Orlando housing market.