Investing in Orlando
Why Invest in Orlando Real Estate in 2019 - 2020?
Known as the world’s favorite vacation destination, Orlando is one of the fastest growing cities in the United States. The city has quietly become one of the main hubs of aerospace, urban and technological innovation in the country, like few others in the region.
This economic diversity, coupled with a massive tourism and transport infrastructure, make Orlando a marvelous location to invest in real estate. Here are some of the most important reasons.
Record-breaking visits.
Orlando welcomes millions of visitors per year, and the numbers keep growing and growing. According to Visit Orlando, 2017 saw Orlando become the first city in the US to receive over 70 million visitors in a single year. It’s no surprise, since the city is home to some of the most famous theme parks and golf courses in the world. For the investor, this means the perfect opportunity to invest in vacation homes, hotels and more.
In fact, Orlando offers the biggest real estate opportunities in Florida, outperforming all-time favorites like Miami in terms of sales activities. As the city becomes the new center for industrial development in the region, more and more people and buildings are needed for both the tourism and hospitality sector.
Excellent prices and revenues
Real estate prices in Orlando are below the national average, however, apartment rentals continue to rise. The growth in rental prices was 3.1% throughout 2018, according to Rent Report Orlando (February 2019) of Apartment List, with a current average of $ 1200 per month for a two-bedroom apartment. This is approximately $ 100 above the national average.
Despite the modest (but constant) increases in rent, Orlando is still seen by many as one of the most affordable destinations in the country. The number of renters in the city continues to growth as more people move in looking for new opportunities.
Another advantage that Orlando offers is its variety: investment properties come in all shapes and sizes. From small rental apartments to massive luxury hotels, there is opportunity for more than one type of investment, both long and short terms.
America’s fastest growing region
Careful urban development, affordable prices and a growing labor market have made Orlando one of the fastest growing metropolitan areas worldwide. Only during 2016 the growth was 2.6%, which translates into an increase of almost 60,000 inhabitants. On top of that, the latest US Census (2017) showed that 65% of the population are renters. The city has seen a 3.7% increase in the number of rentals compared to last year, as opposed to the national 2.7%.
Population trend in Orlando plays a decisive role: the city has seen an important demographic expansion that includes not only retirees, but also a significant number of families and young couples. As a result, more than 1000 weekly jobs are created in the city and housing demand increases rapidly. Stable jobs mean more tenants which then translates into rental income for investors.
State and local tax reductions
The so-called "tax migration" has become one of the main reasons why Orlando has positioned itself as one of the favorite destinations for high-income residents. People from high-taxes states, like New York and California, top the list, as Florida offers them the opportunity to increase the size of their properties while reducing their taxes.
It is important to note that Florida continues to be a big favorite of foreign investors, and US buyers are believed to be more than a temporary trend. The price and sales of luxury properties in the area are expected to continue growing in the coming years as more high-profile buyers look for a way to reduce costs.
