The Best Fix To Rent Market For Investment Real Estate In 2020 is Orlando Florida
The demand for single family homes has been on the rise in the Sunshine State for quite some time. Still, it’s possible to acquire fully renovated properties in good Florida neighborhoods for under $157,000.
What’s even more interesting is that, despite these incredibly low housing prices statewide, many home seekers are choosing to rent instead of buy. As you can imagine, this is causing rental rates to skyrocket (7% in just a year) and is expected to keep increasing in 2019.
On top of great cash flow, values are on an upswing in these areas with no sign of slowing down. They are nowhere near their 2006 highs and inventory levels are still way down because builders just can’t make a profit at these price points.
Property taxes and insurance are low, plus there’s no state income tax. Add warm weather and exceptional health care, and you can see why many of the 10,000 baby boomers retiring every day are moving to Florida.
Orlando is one of the best places to buy rental property and real estate in the state of Florida in 2019. Located in Florida’s “sun belt” region, the area is known for its warm climate, beautiful beaches, world famous amusement parks, entertainment, and attractions.
With a growing population of over 2.5 million residents, the Orlando real estate market is fueled by job seekers, baby boomer retirees, and students who want to live in a “cheap and cheerful” area that offers a high quality of living at a reasonable cost.
Housing Market Statistics
- Median Sales Price: $201,000
- Median Rent Per Month: $1,398
- Median Household Income: $42,000
- Population: 2.5 M
- 1-Year Job Growth Rate: 4.17%
- 6-Year Equity Growth Rate: 66%
- 7-Year Population Growth: 17%
- Unemployment Rate: 2.9%
Housing Market Quick Facts
- Orlando is listed as the #1 Best Places to Buy a House by Forbes for the second year in a row. Projections suggest up to a 35% increase in house prices by 2021.
- Metro Orlando is the 4th largest metro area in the country, and it’s also the 16th fastest growing metro in the nation.
- Forbes reports that 60 million people visited the Orlando area in 2015, making it the most visited tourism destination in the country.
- The population in Orlando has grown 36% since the year 2000. To date Metro Orlando houses over 2.5 million residents.
- Rents grew by 2.49% in the last 12 months, which is 17% higher than the national levels.
- Orlando’s projected job growth for the next ten years is the second-highest (3.2% annual growth) in the United States among the 200 largest metros, Forbes reports.
- Orlando Medical City boasts a $7.6 billion economic impact and will create 30,000 jobs.
Conclusion: Top 3 Reasons to Invest in the Orlando Real Estate Market in 2019
As mentioned, most of the best real estate investment markets have three factors in common: job growth, population growth and affordability. Orlando is no exception…
Job Growth: Orlando’s employment growth is among the best in the U.S. with more than 52,000 new jobs created in just a year and a projected growth rate of 3.2% annually for the next ten years.
Population Growth: Orlando’s population has grown 227% faster than the national average over the last 7 years, and with all the new jobs coming to the area, it’s very likely this trend will continue in 2019. (This means the demand for housing is likely to increase.)
Affordability: In Orlando it is still possible to purchase fully renovated 3-bedroom properties in good neighborhoods for as little as $156,117.
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Why Tampa, Florida? Unless you have been completely unaware of the real estate market over the past couple of years, you have heard about the