With home prices rising and job wages remaining somewhat stagnant, it may be difficult for many low- to mid-income buyers to get into the Orlando housing market.
Considering the existing market conditions, many people are left with no choice but to rent until the market shifts and they can afford to purchase a home. Because of this, the demand for Orlando rentals has gone up considerably.
While this may be less than ideal for some, it does create a best case scenario for those looking at renting out properties that are affordable and accessible. With this high demand for housing comes the opportunity for a steady stream of rental income. This can be very enticing for those wishing to get into the rental property market.
Current Market Trends
As of August 2018, the average cost of renting an apartment in Orlando was $1,256 per month, with a one bedroom at $1,109 and a two bedroom at $1,339. Data shows that rental rates have continued to steadily climb over the past six months.
Rent for one and two bedroom apartments have increased in value by roughly 3.7% and 3.4% respectively. This positive rental trend bodes well for investors looking to purchase a rental property and supplement their income long-term.
It is important to remember that Orlando rental rates vary depending on the particular neighborhood. The highest valued neighborhood when it comes to current rental rates is the Central Business District, followed by Lake Formosa and Baldwin Park. If you are looking at making an investment in a rental property, be sure to heavily research the best locations in order to get the most bang for your buck.
Options for Rental Property Owners
Because of Central Florida’s desirable location year-round, it is a great market to get into for investors. Not only are you virtually guaranteed a constant demand of local renters year round, but your property can also be used accommodate vacationers as well.
It is estimated that over 72 million people visited Orlando in 2017. With out-of-towners looking for more versatile options such as short-term rentals and vacation homes, Orlando landlords have had plenty of opportunities to meet that growing demand for rentals.
When it comes to property types, there are plenty of options to consider. Private homes are an obvious option for those wishing to build up greater equity. Condo hotels, condominiums and townhomes are also great options to look at as they are more affordable and are often located in more desirable locations. Filling these year-round may also be easier with students, young professionals or vacationing families looking for somewhere to stay short term.
Whether you’re local or someone looking to make an investment from out of town, now is the time to make your move in the Orlando rental market. The Realty Medics can help make your dream of property investment easy and hassle-free. Check out why we’re a leader in the Central Florida property management market.
Sources:
RENTcafe’. “Orlando, FL Rental Market Trends” Retrieved from: https://www.rentcafe.com/average-rent-market-trends/us/fl/orlando/
Forbes. “Best Buy Cities: Where To Invest In Housing In 2016” Retrieved from: http://www.forbes.com/sites/erincarlyle/2016/01/27/best-buy-cities-where-to-invest-in-housing-in-2016/#26db3e982429
Rent Jungle. “Rent trend data in Orlando, Florida” Retrieved from: https://www.rentjungle.com/average-rent-in-orlando-rent-trends/?utm_expid=16614331-20.Ke2Q5D_qQCWxND2fzMEPkA.0&utm_referrer=https%3A%2F%2Fwww.google.ca%2F
Realtor. “Orlando, FL Real Estate Market Trends” Retrieved from: http://www.realtor.com/local/Orlando_FL
Orlando Sentinel. “72 million tourists visited Orlando in 2017, a record number” Retrieved from: http://www.orlandosentinel.com/business/tourism/os-bz-visit-orlando-tourism-2017-story.html
