The Florida housing market has been one of the best states for real estate investing in 2019. The Sunshine State is home to a variety of rental markets, including well-known cities such as Miami, Orlando, and Tampa. It is also the home of many underrated real estate markets, including the market of Kissimmee, Florida. Is Kissimmee a good place to invest in 2020? What are the Kissimmee real estate market trends investors should know for 2020? To learn the answers to these important questions, keep reading!
Kissimmee Real Estate Market: City-Level Data
The Kissimmee housing market is a top-performing market in Florida. You might be wondering, however, how can you exactly quantify the market’s performance? The answer is simple: all you need to do is use Mashvisor’s investment property calculator. With Mashvisor’s calculator, real estate investors can learn about the Kissimmee real estate market and all the investment properties for sale in it. To learn more about Mashvisor’s calculator, CLICK HERE! For now, take a look at Mashvisor’s data for the Kissimmee real estate market:
- Median Property Price: $270,216
- Price per Square Foot: $146
- Price-to-Rent Ratio: 15
- Rental Income: $1,466
- Cap Rate / Cash on Cash Return: 1.5%
- Rental Income: $2,498
- Cap Rate / Cash on Cash Return: 3.7%
- Occupancy Rate: 68.8%
Is Airbnb Legal in Kissimmee?
The passing and implementation of Airbnb regulations in various real estate markets has been a hot topic as of late. Since we’ve included the data of Airbnb Kissimmee above, we need to discuss the legality of Airbnb Kissimmee vacation rentals.
So, is Airbnb legal in Kissimmee for a non-owner occupied rental? Fortunately, the answer is yes, it is. There are a number of Kissimmee Airbnb laws that Airbnb hosts should be aware of which you can learn about in detail on Airbnb’s Kissimmee Help Page. Here is a brief description of the most notable Kissimmee Airbnb laws:
- Conditional Use Permit: Hosts may require a conditional use permit, which can be obtained from the city’s Planning and Zoning Division or Code Enforcement Division directly.
- Zoning Requirements: Hosts need to contact the Planning and Zoning Division to ensure their rentals are consistent with zoning definitions.
- Taxes: Hosts are required to pay a 6% Tourist Development Tax and 6% Florida State Sales Tax.
Kissimmee Real Estate Market Trends for 2020
The Kissimmee real estate market 2020 is expected to continue its current market success. There are seven notable trends Kissimmee real estate investors should know about, including:
The prime goal of investing in a rental property is to earn rental income. Luckily for a Kissimmee real estate investor, Kissimmee real estate is very lucrative for both traditional and Airbnb rental properties. As previously mentioned, the average traditional and Airbnb rental incomes in Kissimmee are $1,466 and $2,498, respectively. The flexibility of rental strategy choice allows investors to make a big bang for their buck with Kissimmee investment properties.
The cost of rental properties is a significant influence on the demand and ability to invest in a rental market. Fortunately, house prices in Kissimmee are excellent in this regard, as they are admirably inexpensive. The median Kissimmee real estate investment price is $270,216. This is considerably lower than the state median of $439,807 and the national median of $325,200. With an affordable median property price, buying investment property in Kissimmee is doable for any experienced or novice real estate investor.
Real Estate Appreciation
Rental income is not the only form of profit for investment properties. Real estate appreciation, or an increase in value over time, is a long-term form of profit that all property buyers and investors benefit from. The Kissimmee real estate market has historically had a high appreciation rate. According to NeighborhoodScout, the Kissimmee housing market has been in the top 20 percent for national appreciation in the last 10 years. Over the past year, Kissimmee had a real estate appreciation rate of 6.7 percent, according to Zillow. It is expected that 2020 will bring another high rate, 3.9 percent, to the Kissimmee rental market.
More often than not, a strong economy is correlated with a strong real estate market, and vice versa. This is certainly the case with the traditional Kissimmee rental market. Kissimmee has a very diverse economy, with common sectors such as accommodation, food services, retail trade, arts, entertainment, and business. The city’s job market has increased by 3.9% over the last year, which is well above the US average of 1.8%. This growth is projected to increase in the long-term, as the estimated growth over the next 10 years is predicted to be 45.5%, which is well above the US average of 33.5%.
Another great indicator of a healthy traditional market and a good place to invest in real estate is population growth. Since 2000, Kissimmee has had a population growth of about 15 percent. Over the last year, the population has increased by 2 percent. With a population of over 71,000 and its proximity to Orlando, Kissimmee has acted as an affordable and suburban alternative for Floridians.
As previously mentioned, Kissimmee is very close to Orlando. This nearness has boosted the city’s tourism, as Kissimmee is just minutes away from Disney World and other major amusement parks. Kissimmee is also an hour and a half away from the Atlantic Ocean. The Gulf of Mexico is also located along the shore of Lake Toho, which is close to the area. With two of Florida’s key tourism drivers nearby, the Kissimmee real estate market is ideal for Airbnb short-term rentals.
Just as Kissimmee real estate is perfect for both traditional and Airbnb profitability, it also garners demand for both rental strategies. Although Kissimmee is considered a warm seller’s market on the buyer’s market/seller’s market spectrum, it generates high traditional demand. Even with its affordable house prices, over 60 percent of Kissimmee’s residents reside in rental properties. Airbnb demand is notably high as well, with an Airbnb occupancy rate, as mentioned earlier, near 69 percent.
All in all, the Kissimmee real estate market will remain a successful Florida rental market in 2020. With cheap property prices, a high appreciation rate, and profitability and demand for both traditional and Airbnb strategies, the Kissimmee market will attract investors from all across the Sunshine State. To start searching for Kissimmee homes for sale, CLICK HERE to start your 14-day FREE trial with Mashvisor!