Trends & News 5 Orlando Real Estate Market Trends to Expect in 2020 by Hamza Abdul-Samad September 18, 2019September 17, 2019 by Hamza Abdul-Samad September 18, 2019September 17, 2019 The Florida real estate market is truly “The Sunshine State”, especially as it pertains to its rental markets. One of the state’s most successful markets in 2019 has been the Orlando real estate market. But as the decade comes to an end, what are some Orlando real estate market trends real estate investors should expect in 2020? Keep reading to find out! Related: Florida Housing Market Predictions for 2020 Orlando Real Estate Market: City-Level Data In order to properly explain the Orlando real estate market forecast, we need to go over the city’s real estate market data. Where can investors find this data on the Orlando housing market and Orlando homes for sale? Right here, with Mashvisor! To learn about how Mashvisor computes real estate data for Orlando and other cities in the US, click here! In the meantime, here is the investment data for the average Orlando rental property: Pricing Median Property Price: $348,752 Price per Square Foot: $182 Price-to-Rent Ratio: 17 Traditional Investing Rental Income: $1,703 Cap Rate / Cash on Cash Return: 1.7% The 5 Orlando Real Estate Market Trends to Expect in 2020 So, what are the Orlando real estate market trends investors should be aware of heading into 2020? Here’s what you can expect from the Orlando housing market in the next year: Orlando houses for sale will be affordable Local investment properties will appreciate There will be a high demand for traditional rentals You can enjoy a high rental income The city will be a seller’s market We will use the data of Orlando and more to illustrate each of these Orlando housing market predictions. 1. Affordability Of all the Orlando real estate market trends, its affordability is arguably the most important. Orlando house prices are well below the state median, which is $439,807 according to Mashvisor. And although the city’s median rental property price is higher than the national median of $312,800, all of the six best neighborhoods (listed below) have an average Orlando real estate investment price that is less than this. For instance, five of the neighborhoods listed below are less than $300,000 and four are less than $250,000. Orlando’s affordability also extends to its overall cost of living. The cost of living in Orlando is less than those of other Florida cities including Fort Lauderdale, Miami, Cape Coral-Fort Myers, and Tallahassee. This low cost of living will continue to encourage people to move to Florida, increasing your potential renter pool. Orlando’s affordability is a vital trend that is expected to continue into 2020. 2. Steady Real Estate Appreciation The appreciation rate is another key feature of the Orlando real estate market trends. According to NeighborhoodScout, the projected Orlando real estate market appreciation rate for 2019 is 3.35%. This places the city in the top 40% for national appreciation. Orlando’s appreciation rate for 2020, however, is expected to increase to a rate of 4.5%, according to Zillow. This will likely increase Orlando’s house prices slightly in 2020, but overall, the city will remain an affordable market. 3. High Demand for Traditional Rental Properties The best way to invest in Orlando real estate is to buy a traditional rental property. Besides some of the other Orlando real estate market trends mentioned above, there are other factors that contribute to the success of the traditional market. The city’s economic success, for instance, plays a key role in its ability to attract tenants. Orlando has an unemployment rate of 2.9%. This is lower than the state’s rate of 3.3% and the US average of 3.9%. Orlando is also expected to have significant job growth. Over the past year, the local job market increased by 3.9%, which is much more than the US average of 1.6%. Its future job growth over the next ten years, at 51%, is much higher than the US average of 33.5%. Thanks to these trends and more, rental demand is high in Orlando, with about two-thirds of the population residing in an Orlando rental property. Related: These Are the Features of the Best Places to Invest in Real Estate 4. High Rental Income Rental income is always the main goal when buying a rental property, and the Orlando real estate market fulfills this purpose excellently. Because of the high demand, an Orlando investment property will generate high rental income. And thanks to the high rental income, the average return on investment (1.68%) is also a good one. So, if you’re looking for a profitable Florida investment property, you’ll find one in Orlando! 5. Seller’s Market Despite all the positive Orlando real estate market trends for buyers, the Orlando real estate market is, unfortunately, not a buyer’s market. On the contrary, the market is a hot seller’s market, according to Zillow. However, the market might experience some cool down in 2020, as Orlando’s housing inventory is steadily rising. Best Neighborhoods for Traditional Rentals in the Orlando Real Estate Market Where are the best traditional neighborhoods that will benefit the most from the positive Orlando real estate market trends? Where should you invest exactly in the Orlando housing market 2020? According to Mashvisor’s heatmap analysis, the best neighborhoods in Orlando are Rio Grande Park, Roosevelt Park, and Dover Manor. Related: What Are the Basics And Benefits of Heatmap Analysis for Finding Rental Properties? Rio Grande Park Pricing Median Property Price: $110,967 Price per Square Foot: $99 Price-to-Rent Ratio: 8 Traditional Investing Rental Income: $1,145 Cap Rate / Cash on Cash Return: 5.1% Roosevelt Park Pricing Median Property Price: $115,467 Price per Square Foot: $155 Price-to-Rent Ratio: 9 Traditional Investing Rental Income: $1,125 Cap Rate / Cash on Cash Return: 4.4% Dover Manor Pricing Median Property Price: $275,000 Price per Square Foot: $166 Price-to-Rent Ratio: 13 Traditional Investing Rental Income: $1,791 Cap Rate / Cash on Cash Return: 3.8% All in all, the Orlando real estate market will continue to be a top real estate destination in 2020, all thanks to the Orlando real estate market trends mentioned in this blog. If you want to start looking for an investment property in one of the best rental markets to invest in Florida, you can do so with Mashvisor’s tools. To start searching for positive cash flow Orlando homes for sale to invest in, click here to start your FREE 14-day trial with Mashvisor’s investment property calculator! Start Your Investment Property Search! START FREE TRIAL NeighborhoodOrlando FLTraditional 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post How to Become a Landlord in 2020: 6 Steps Next Post How to Sell Your House Fast: 11 Tips Related Posts Is It a Buyer’s or Seller’s Market in Real Estate? How to Tell the Difference 4 Important Factors Affecting the Real Estate Market Las Vegas Housing Market Beats Seattle Real Estate for #1 Spot in the US The 4 Hottest Cities for Investing in California in 2018 How a K-Shaped Recovery Could Impact Real Estate 7 Real Estate Tips That No Longer Hold Up in 2018 Should You Be Shorting Real Estate Right Now? How Real Estate Supply and Demand Should Affect Your Investment Decisions Did You Know Easter Is the Best Time to Buy a House for Investment? 4 Sectors That Benefited Most from Data Analytics Software Arizona Housing Market Predictions for 2021 Oakland Housing Market Predictions for 2020 Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.