Central Florida: Real Estate Market Report
Orlando & Kissimmee
The Canadian demand to live in Central Florida has been on the rise for years, specifically in the state’s designated attraction zones, Orlando and Kissimmee. Acting as either the seat or the gateway to theme park giants like Disney World, Universal and SeaWorld, both Orlando and Kissimmee’s tourism traffic and residential demand has increased significantly over the years.
Orlando, Florida – it’s more than just the hub for tourist attractions, though it was named “Theme Park Capital of the World” in 2016 for drawing more than 68 million visitors with its alluring entertainment charm. More than that, though, it features high-end, luxury shopping, culinary delights from around the world, culture, trendy city planning, and massive expansion. Nicknamed the City Beautiful, Orlando is drawing people in from all over the world including Canadians. Whether it’s because of the climate, its metropolitan area circling the famous Lake Eola or the flashy, tourist-drawing International Drive, the demand for space here is rising.
Though best known as the gateway to Orlando and its ever-growing collection of theme parks, tourist attractions, shopping, and dining, Kissimmee is famous. The county seat of Osceola County, this mid-sized city is far more than just a confusing name to pronounce. It’s a beautiful area surrounded by small-to-mid-sized lakes, in addition to bordering the large Lake Tohopekaliga (we know, another confusing name to pronounce. Thanks, Florida). Of course, being the gateway to Orlando and its attractions has its perks, too. A more rural area, this city is about 25 miles south of Orlando (about a half-hour of driving time) and offers a much calmer, more laid-back lifestyle than the Orlando metropolitan area.
Orlando: Real Estate – Then, Now, and On the Horizon
As we stated before, the demand for housing in Orlando is on the rise, and when you compare the real estate market data from 2016 to the data of 2017, that demand is noticeable. Over the past year, the Orlando market trends have indicated a $15,000 increase (that’s about 7 percent) in median home sales. Following suite, the average price per square foot for homes in Orlando (during the same period) rose from $121 to about $132. But the real estate numbers weren’t just affected by home sales and square-footage, in fact, the median rent price increased from about $1,500 in 2016 to about $1,600 in 2017. Additionally, the number of rentals available, though peaking at about 4,500 in mid-2017, dropped to about 3,500 toward the end of 2017. This data implies that the demand for rentals in Orlando is high, with the prices rising and availability becoming slimmer.
As far as housing costs, Orlando is below the national average for the United States, but housing prices did increase over the past year. Currently, the housing market places the average cost for a home in Orlando at about $187,604 (that’s about 6 percent higher than the previous year)– compared to the national average of $211,704, that’s not a bad price point, and people are noticing. The number of houses available in Orlando, Florida decreased by about 16 percent over the course of the year, with sales jumping up by about 7 percent and new listings increasing by 8 percent.
The demand for Orlando real estate is ever-increasing as baby boomers increasingly look for temperate climates to spend their winters. Also with additional attractions, resorts, residential housing, and other establishments being built, it’s forecast that the real estate demand will only continue to increase (with predictions that home values will rise by about 3.8 percent in the next year). One driving factor that might lead this in 2018 is the recently developed (and still developing) Grove Resort & Spa – one of our featured properties. This massive new resort spans 8,000 acres and contains 17,000 two-to-three-bedroom units with a combined total of 2 million square feet of commercial, retail, and hospitality space. This features full, resort-style amenities including a full water park and dozens of other features. That’s not the only massive construction project forecast for 2018. Major road work projects (to make accessing theme parks easier) will be complete in 2018, as well, in addition to routine construction of residential housing in the area.
Related News From The Web: Orlando Real Estate Poised to Post 2017’s “Hottest” Gains
Kissimmee: Real Estate – Then, Now, and on the Horizon
The gateway to the land of theme parks has a high demand for housing, as can be expected. When data from 2016 and 2017 are compared, it’s easy to see that more people are looking at moving to Kissimmee, Florida, and the real estate market is quickly recognizing it. Over the past year, the Kissimmee market trends indicate a whopping 9 percent increase (that’s about $15,000) in median home sales over the past year, with a price per square footage increased as well from $101 to about $111. The increase didn’t just show up in home sales, though, the median rent for Kissimmee, Florida increased from about $1,350 to about $1,400 over the course of the year. Additionally, after peaking about 1,500 in mid-2017, the number of available rentals declined significantly, suggesting less rentals available in the market. For 2017, the media home value and price are about $119,900. That’s an increase from the 2016 value, but a healthy difference from the national average of $211,704.
As far as the future and forecast for real estate in Kissimmee, it’s predicted that the demand for housing will continue to increase, with an expected gradual uptick in home prices, predicted to rise about 4.1 percent over the next year. Construction in the area, both with city-wide projects and residential additions, will only prove to increase the demand for housing in 2018 for Kissimmee, experts predict. For example, one addition to Kissimmee that could potentially drive demand for residential space and increase in home prices is the completion of the expansion of the Sun Rail into Osceola County. The expansion would place four new stops in the area, with one right in the heart of downtown Kissimmee. Another interesting addition to Kissimmee that’s distinct is a condominium building, set to be completed in 2018, built and owned by Airbnb, allowing tenants to rent out their condos legally, without running into landlord or HOA issues. The 324-unit apartment complex will allow owners to rent out their condominiums for up 180 nights a year on Airbnb, encouraging seasonal residents to purchase property, even if they’re not planning to live in the unit year-round.