Construction of new homes in Orlando is booming thanks to an influx of out-of-state residents moving to Florida, low interest rates, and Orlando’s renowned attractions. In addition, Orlando’s rental market is tight, with an average vacancy rate of 8.3 percent.
The Construction Boom in Orlando
Dodge Data & Analytics reported new home construction valued at $711 million in Central Florida counties during the month of July, an increase of about 22 percent compared to July 2019.
The boom in construction supports the local economy by creating new job opportunities. That’s good news for home investors looking to buy short-term rental vacation homes in one of the country’s most popular destinations. As Orlando home sales continue to rise, so does the value of local vacation homes and the opportunity available to buyers.
New Residents are Making their Way to Orlando
The pandemic has created big shifts in the way people live and work. More people are working from home, and residents from states like Connecticut, New Jersey, and California are looking for less crowded places in which to live.
A recent Gallup poll found that three in five U.S. workers who are doing their jobs from home due to the pandemic, would prefer to continue working remotely once public health restrictions are lifted. As a result, more people may choose to live farther away from their jobs in homes that offer greater value when compared to more expensive (and populated) cities.
The latest data on home sales in Central Florida appears to confirm this theory. The Orlando Regional Realtor Association reports that local home sales climbed more than 18 percent in July, compared to the previous month.
The Thriving Central Florida Real Estate Market
Lower home prices and a less dense population make Orlando the ideal choice for home investors, contributing to the renewed growth in construction. Buyers looking for more square footage can get a larger home in Central Florida for the same money they’d spend in other metropolitan areas of the country. For example, the Orlando Regional Realtor Association reported that the median statewide sales price in New York in May was almost 45 percent more than the median sales price in Orlando.
Getting more bang for your real estate buck is just one of the reasons why the market in Orlando and the Central Florida area continues to thrive. Home buyers and realtors have the technology to complete the showing process remotely. This lets out-of-state buyers easily search for, find, and close on new homes.
Making the buying process easier has fueled the demand for vacation homes in Orlando. Home prices have been on the rise, giving buyers more confidence that their new home will provide a higher return on their investment.
Team Donovan helps home investors take advantage of the opportunities that the Orlando estate market has to offer. We can help you find a home that meets your family’s lifestyle needs and appeals to short-term vacation rental guests. Schedule a free consultation with us to learn more by completing our online form, or call us at (407) 705-2616.