FOCUS ON REAL ESTATE IN ORLANDO, FLORIDA, USA

 FOCUS ON REAL ESTATE IN ORLANDO, FLORIDA, USA

Regularly listed as a prime region for real estate investment, Orlando is one of the cities to watch closely in 2020. What do you need to know about real estate in Orlando, Florida, USA? Is this the place to invest first? Here's our analysis and conclusions.

Orlando: Overview of the “Beautiful City”

Located in the heart of Florida, Orlando is the largest city in the U.S. state. Its population exceeds 280,000, making it the 73rd most populous city in the United States. Nicknamed the "City Beautiful," Orlando is actually the center of a larger metropolitan area with a population of some 2.5 million.

Orlando's economy is active and diverse. The positive growth rate is expected to continue beyond 2020. While tourism remains a driving force of the local economy, Orlando is also a major industrial and high-tech center. The main economic sectors that support residents include accommodations, restaurants, retail, healthcare, professional and scientific services, educational services, and arts and recreation.

With a strong focus on digital media, Orlando is also a hub of innovation in software development, as well as aerospace, aviation, and agricultural technology. It's home to the seventh-largest U.S. research park. A national leader in healthcare and medical services, Orlando is a major hub for film, television, and video games.

Economic diversity is a key part of Orlando's appeal to real estate investors.

Orlando: A City Focused on Tourism

Along with New York, Las Vegas, Chicago, and Miami, Orlando is one of the most visited cities in the United States. A top tourist destination, its name shines throughout the world. And for good reason! Orlando is home to seven of the ten most visited theme parks in North America, as well as five of the most visited theme parks in the world. It's no surprise, then, that Orlando's image remains closely linked to theme parks in the minds of tourists today, and rightly so. Walt Disney World is the largest tourist attraction in and around Orlando. Other attractions include SeaWorld, Legoland, Universal Studios Florida, and the famous Kennedy Space Center Visitor Complex.

Orlando's Population: Income and Profiles

In Orlando, the average per capita income is $25,664, slightly lower than the U.S. average ($28,555). The median household income, meanwhile, is well below the national level ($53,482).

In contrast, Orlando has a lower unemployment rate and higher job growth than the rest of the United States.

In terms of properties, approximately two-thirds (65%) of the local population are renters, influencing demand in the Orlando, Florida, USA real estate market.

Airbnb-style rentals are also enjoying some success, particularly due to the approximately 75 million visitors who visited theme parks in 2018.

The real estate market in Orlando, Florida, USA, certainly has many advantages, and its tourist appeal contributes significantly to its development. In the report published by PwC ( Emerging Trends in Real Estate: United States and Canada 2019 ), Orlando comes just after Dallas-Fort Worth, New York-Brooklyn, and Raleigh-Durham in the list of cities worthy of interest for investors. Indeed, the ability of the beautiful city to attract the interest of institutional investors has been and continues to be a major driver of the Orlando real estate market.

Real Estate in Orlando, Florida, USA: Why Proceed with Caution?

Certainly, the real estate market in Orlando, Florida, USA, has many advantages. However, as we write this article, the market could be described as "neutral," with increasingly marked disparities from one location to another. Indeed, micro-markets seem to be developing in Florida that do not evolve in the same way. For example, some locations, like Clermont, Florida, may be attractive from a real estate perspective, while others, like Mineola or downtown Orlando, may have become less attractive.

Right now, the average price of a home in Orlando is around $165,000. Of course, there are disparities between neighborhoods. The trend is toward a seller's market, but clearly, we're not dealing with a "hot market." The notion of a cold market is more in favor of buyers, meaning there are more properties on the market and prices have fallen. A warmer market, on the other hand, is in favor of sellers, resulting in fewer properties for sale and a higher mix of buyers, thus driving up prices. In many areas around Orlando, the cooling trend is becoming more pronounced.

It's difficult to give a specific rule or advice when it comes to buying or selling in Orlando, as the market is quite volatile in many areas. Rather than viewing the Orlando, Florida, USA real estate market as a whole, it's essential to consider where you live and where you're interested.

In so-called "hot" market areas, sellers are likely to want to set their prices higher. It also depends on how quickly they want to sell. In an emergency, some will not hesitate to set a price slightly lower than their nearest competitor.

Furthermore, since the Orlando, Florida, USA real estate market fluctuates so much, information from recent months may not be as accurate as it should be. Therefore, it's best to seek the help of a real estate expert for objective information and advice.

Another important point: like all sectors, the real estate industry is not immune to the impact of the coronavirus health crisis. Figures released by the Orlando Regional Association of Realtors indicate that home sales fell by at least 28% in April 2020, compared to the same month in 2019. Despite the decline, the figures do not appear to echo the 2008 housing crisis. Moreover, distrust is pervasive on both the buyer and seller sides.

To optimize your real estate investment in the USA, call on French-speaking experts who can support you and provide objective advice.