When looking for the best place to invest in real estate in Florida in 2020, Orlando stands out as a top choice. With its strong job growth, affordable housing prices and high rental demand, Orlando provides excellent conditions for buying investment property. The metro area saw over 60,000 new residents in 2019 alone. Tourism and the massive University of Central Florida student population of over 60,000 help fuel a thriving rental market. The median home price in Orlando is still very affordable at around $265,000. Rental yields are strong, averaging over 9% according to some estimates. For real estate investors looking to capitalize on Florida’s continued growth, Orlando represents an ideal market.
Orlando’s job growth drives housing demand
A key factor that makes Orlando an attractive place to invest in real estate is its strong job growth. Major employers like Disney World, Universal Studios and Lockheed Martin have operations in the metro area. Tourism, healthcare, aerospace and technology are important industries that are adding new jobs every year. The unemployment rate was just 2.8% at the end of 2019. With more people moving to the area for work, demand for both housing rentals and purchases remains high. This provides a steady stream of tenants and buyers for investment properties.
Affordable median home prices compared to national average
Despite being one of the fastest growing metro areas in Florida, home prices in Orlando are still very affordable. The median home price was around $265,000 in 2019, significantly lower than the national median of $300,000. First time home buyers and investors on a budget can still find good deals on single family homes, townhomes and condos in Orlando neighborhoods like Lake Nona and Winter Park. The relatively low prices combined with strong rental demand makes Orlando an excellent market for real estate investors looking for cash flow.
High rental yields driven by tourism and students
Orlando has a thriving rental market thanks to its huge tourism industry and large student population. Over 75 million visitors come to Orlando each year to visit theme parks like Disney World and Universal Studios. This creates strong demand for short term vacation rentals. The University of Central Florida has over 60,000 students, many of whom rely on off-campus housing rentals. This steady stream of tourists and students allows investors to generate high rental yields. Gross rental yields of 9-11% are common for single family rentals in Orlando.
Strong population growth as people continue moving to Florida
Florida remains one of the fastest growing states in the U.S. and the Orlando metro area is leading the way. Orlando saw population growth of 2.5% in 2019, more than double the national average. Nearly 1,000 people move to Orlando every week on average. Real estate investors are attracted to Orlando’s strong population growth as more people means more demand for rentals and housing. With downtown Orlando also revitalizing, the area is attracting young professionals and families seeking an affordable alternative to pricier coastal cities in Florida.
For real estate investors, Orlando represents an ideal market in Florida with its affordable home prices, high rental yields, major employers and rapidly growing population. The city offers the right mix of factors for investing in rental properties and flipping homes for profit.