Besides being the dream destination for tourists, Orlando real estate market is considered one of the best real estate housing markets in the United States. In fact, “The Beautiful City” has been ranked as the third best investment location by Forbes. In this blog, we’re going to go through the top reasons that make Orlando one of the best housing market to invest in. So, if you’re looking to invest in real estate, we recommend that you continue reading to find out why Orlando is your ultimate choice!
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Reason #1: Growing Population
The first reason why the Orlando real estate market is the best investment for a new real estate investor is with regards to the demographic trends. Orlando is considered the top metro city to invest in mainly due to the growth of population. The city’s population is growing at a much faster rate than other US cities today. Orlando’s population growth reached 7.3% over the past three years, making it a home to over 3.3 million residents!
People continue to choose Orlando real estate for various reasons. Located in Florida’s “Sun Belt” region, Orlando is known for its warm climate, beautiful beaches, and world-famous amusement parks. Many job seekers, retirees, and students make Orlando their home as it offers a high quality of living at a reasonable cost. Moreover, Orlando has been attracting not only residents, but also tourists. In fact, the city attracts almost 35 million visitors each year, making it the most visited tourist destination in the US housing market!
The growing population naturally results in increasing real estate investment opportunities in the Orlando real estate market. Thinks about it: more people = more tenants! These demographic trends are most likely to continue into 2018, which is a good sign for a real estate investor thinking of breaking into the Orlando real estate business.
Related: Should Real Estate Investors Consider Moving to a New Location in 2018?
Reason #2: Orlando’s Economy Is Booming
As the Orlando housing market continues to welcome more people, its economy also continues to grow and be favorable for real estate investors. The flourishing economy is actually the backbone of the Orlando real estate market’s success. The entire State of Florida, in general, demonstrates an increasing job growth, and Orlando’s employment growth, in specific, is better than that of most markets in the US housing market. Now let’s talk numbers: Orlando’s employment rate increased to 4.6%, while its unemployment rate went down to 4.5%, which is significantly better than the national average.
This growing job market has added more demand for Orlando real estate, thus increasing homes values. This is another reason why real estate investors consider Orlando the best location to invest in. In fact, the Orlando real estate market today is one of the hottest in the US housing market. When you invest in a rental property in Orlando real estate, you guarantee tenants who are capable of paying rent regularly on a monthly basis, which further ensures a positive cash flow. In addition, in real estate markets with better employment growth, a real estate investor can ask for – and justify – higher rents for his/her real estate investment properties, which leads to a higher rate of return on investment.
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Orlando real estate market’s job sector is very healthy and will continue to remain the driver of supply of and demand for real estate in the area. In fact, Orlando real estate claims the second highest rental yield in the US housing market, almost twice as high as the San Francisco real estate market!
Reason #3: Investment Opportunities for All Property Types
The next reason why Orlando real estate is the best investment for new real estate investors is the fact that the Orlando housing market enjoys a variety of investment property’ types to pick from: from starter homes and cottages, through historic homes, to extraordinary modern real estate investment properties.
Moreover, as previously mentioned, the Orlando real estate market attracts not only long-term residents but also tourists. Orlando is the ultimate destination for tourists as, according to Forbes, over 60 million people from around the world visit the city each year thanks to its beautiful weather, beaches, and of course 5 of the 10 most visited theme parks worldwide including Disney World, SeaWorld Orlando, and Universal Orlando Resort. This makes Orlando real estate perfect for investing in short-term Airbnb rentals, as it’s safe to say real estate investors will not be short of potential guests.
However, in the Orlando housing market, some neighborhoods are zoned for short-term Airbnb rentals, while others are not. This shouldn’t discourage you from investing in Orlando! If you’re planning on investing in Orlando real estate through Airbnb, just consult a legal advisor to make sure your neighborhood allows it.
Related: Your Real Estate Investment Guide to Airbnb Rental Properties: Where Is Airbnb Legal?
In addition, the median price of investment properties in Orlando is slightly cheaper than the national level – we’ll go into this further in details in a different blog. Thus, if you’re looking to invest in real estate, Orlando seems to the best choice whether for the long or short term.
Reason #4: Millennials Drive Orlando Real Estate
If you are a millennial interested in real estate investing, we encourage that you further consider the Orlando real estate market. As stated earlier, millennials, along with young entrepreneurs, continue to move into the city due to the strong job market, low housing costs, and high appreciation. Orlando, in fact, is one of the top 6 cities with the largest percentage increase in millennials. This group is indeed the one driving the growing economy in the future! Therefore, if you’re a young real estate investor, hurry up to invest in Orlando real estate before missing out on big profits.
Reason #5: Appreciation
Another incentive for a new real estate investor to invest in the Orlando real estate market is with regards to appreciation trends. It seems that real estate investment properties appreciate higher in the Orlando real estate market than in other housing markets in the country. When talking numbers, we found that:
- The one-year appreciation rate for Orlando real estate investment properties is nearly 4.7%.
- The three-year appreciation rate for Orlando real estate investment properties is more than 40%.
These numbers will attract any real estate investor!
Related: Is It OK to Invest in Real Estate Just for Appreciation?
Orlando Real Estate: Conclusion
Orlando real estate continues to welcome new real estate investors as many people flock into the city either as long-term residents or short-term tourists. This means a real estate investor has a chance to invest in either traditional or Airbnb investment properties. The increasing number of people further contributes to the growing job market and booming economy, making Orlando a favorable and appealing location for many real estate investors. All these reasons make it clear why Orlando is one of the best cities in the US housing market for investing in real estate.
Mashvisor provides actual and potential real estate investors with numerous city guides, step-by-step blogs, and tips for succeeding in the real estate business. Make sure to check out Mashvisor to find the best investment property in the US housing market!