Location is the key factor to consider when looking to purchase property. Whether you’re buying a home for yourself or looking at residential and commercial sites as investments, where you buy will determine how much return you’ll get on your dollar. There are numerous variables on a national level that will impact a local real estate market, but there are an equal number of things that happen regionally that will do the same. The more aware you are, the more likely you are to make educated decisions on where to invest. With the market in Orlando, FL, performing especially well in recent years, you might be considering a move or an investment there. Here’s what you should know.
The national real estate forecast shows a cooling market
The Great Recession of 2008 slowed the building of new homes, which Forbes reports the nation hadn’t fully recovered from by the time construction came to a screeching halt during the 2020 Covid-19 pandemic. This created an increased demand for existing homes, driving up median home prices to historic highs.
But as time has passed, the housing market has cooled some. In April, it was reported that median home prices were down year-over-year for the first time since before the pandemic. With interest rates on the rise, many homeowners are staying put, prompting some experts to forecast that the market will continue to cool before leveling off later in 2023.
Adding to concerns is the prediction that the United States might be headed toward a recession by the end of the year, although it won’t be anything as severe as the one in 2008. But even with these factors looming, there is still a shortage of homes in many major real estate markets. Though not quite the sellers market the nation saw in 2021, there are still many homes being sold for well above the asking price.
Taking into consideration the national forecast, what does this mean for real estate in Orlando?
The economic outlook in Orlando is positive
The state of Florida is the 10th largest economy in the world, and the city of Orlando is certainly one of the municipalities making a positive financial impact on the Sunshine State. The population of the city sits at just over 300k, and is continuing to grow.
The overall cost of living in this city is a bit higher than the national average, but much lower than other cities in Florida. And while you might pay a bit more for healthcare and utilities in Orlando than you would elsewhere in the U.S., the median home prices here are the same as the national average. Orlando is touted as being one of the most affordable cities to move to, which is certainly a factor in why the population in this city is still rising.
The jobs data for Orlando is also positive. The unemployment rate for the city was listed as being only 2.7%, compared to the national rate of 3.4%.
Leisure and hospitality jobs are the biggest employment sector in Orlando, but with so much expansion occurring, you’ll find that there is an abundance of opportunities in construction. There’s no doubt that low unemployment and good jobs are reasons to consider Orlando a great spot to invest in real estate. But the current economic data and expert forecasts say so much more.
What does the future hold for the economy in Orlando?
The jobs market in Orlando has seen an increase of almost 4% in the last year. And while this is great news, experts are predicting that this city will see even more growth in this area moving forward. It’s forecasted that job growth will top 50% over the next decade, which is substantially higher than the national average predicted of 33%.
The mega-employers in this area are Lockheed-Martin, Siemens, Electronic Arts, Disney, and Universal Studios. The latter two are essential cogs in the tourism machine, which is booming after Covid-19 restrictions have been eliminated. As tourists from all over the globe continue to pour into the city, their dollars will give great boons to the economy there.
What does the economic forecast mean for real estate in Orlando?
The decision to buy or sell any property isn’t one to be taken lightly. While there are a good number of factors to consider, the economic climate of the city you’re considering should be high on the list. And there are many reasons to consider investing in real estate in Orlando now.
Taxes in Florida are some of the lowest in the nation. There’s no individual income tax in the state, and sales taxes in this city are lower than the national average. With the cost of living index being essentially the same as it is nationally, your dollar will go further in Orlando than it will in most places.
Orlando is, and will continue to be, a top destination for tourists from all over the globe. The growing number of theme parks and resorts in the area will continue to employ hundreds of thousands of people. And with so many of these places expanding, these jobs will grow in number.
Even if median home prices do dip a bit between now and the end of 2023, the city’s growth economic forecast will mean that you’ll have a property in an area that will continue to be hot. And if the Fed raises interest rates again before the end of the year, you’ll be able to lock in on a rate now that will save you money.
Your next moves
If you are considering buying real estate in Orlando, you will be best guided by real estate professionals with a proven track record for helping buyers and sellers in this market. The agents at the Core4 Group have the years of dedication and experience to match you to your dream home in this growing Florida city.
