Orlando Rental Market Trends for 2020Liam Pool
Even in times of economic uncertainty, Orlando remains one of the best real estate markets for investors. There are over a thousand people moving into Orlando every day, and the city and its surrounding communities offer economic opportunity as well as a high quality of life.
At Homevest, we provide expert Orlando property management, real estate, property rentals, and HOA management throughout central Florida. We know this market better than anyone, and we’ve learned how to manage its challenges and its benefits.
Today, we want to tell you about what to expect from the Orlando rental market for the rest of 2020. It’s been an unusual year, but the real estate market in Orlando remains strong and steady.
Orlando Has a Strong Tenant Pool
The best news for Orlando real estate investors is that there’s no shortage of good tenants. Even with the COVID-19 pandemic rattling rental markets across the country, people in Orlando have generally remained employed, economically viable, and willing to rent high-quality, well-maintained homes. If you have a new construction unit in downtown Orlando or a comfortable single-family home in a gated HOA community outside of the city, you’ll have your choice of well-qualified residents.
Orlando continues to attract new residents, thanks to the entertainment and tourism industry, the colleges and universities in the area, and the emergence of new companies and businesses in healthcare, technology, and other commercial industries. It’s more than theme parks, and it’s getting a lot of attention from people who are looking for a new place to live. With housing prices rising for buyers, more and more people are looking to rent.
Demographic Shifts for Orlando Tenants
There’s another trend in the Orlando rental market, and that’s tenant demographics. One of the reasons it’s still such a strong market for investors is that there are two specific groups of tenants who are filling properties: millennials and retirees. Those in the millennial age group have little interest in buying a property. They grew up during the real estate collapse a decade ago, and they don’t care to invite that kind of financial uncertainty into their own adult lives. Even as they’re establishing careers and having families of their own, home ownership is not a priority.
The rise of “active adult” communities in and around Orlando speaks to the numbers of retiring Americans who continue flocking to Florida. These are people who are currently retiring or nearing retirement age. They enjoy their privacy and space, but they’re not so interested in spending this phase of their lives on maintenance and home repairs – they would rather leave this to people like Apollo Plumbing (https://www.apolloplumbing.net) to come out and do the work for them. They don’t want to be beholden to a mortgage, especially if they’ve just sold a home. So, they’re renting, and they’re excellent, financially secure tenants.
Orlando Rental Market Forecast
Orlando’s housing market for the rest of 2020 and into 2021 is looking like it will continue to perform well, even with the global pandemic leaving people uncertain about what’s to come.
It’s a strong seller’s market, and people looking for new places to invest have noticed Orlando. Now is the time to grab a new single-family rental home or a handful of units in a multi-family building. Home prices in Orlando have appreciated steadily since 2015, outpacing many other markets along the east coast.
We’d be happy to talk about the opportunities in Orlando and throughout the city’s diverse neighborhoods and communities. Contact us at Homevest. We manage properties and associations in Orlando and throughout central Florida, including Winter Garden, Doctor Phillips, Baldwin Park, Winter Springs, and Windermere.