The Orlando real estate market is shifting. We’ve seen home prices rising while inventory continues growing, but the people moving to the area is slowing. Here's what you need to know if you invest in Orlando real estate.
Orlando Sales Price Fluctuations
The real estate market has seen the normal month-to-month fluctuations, but, in general, sale prices are still following an upward trend. For example, so far in 2025, sale prices rose 2.7% from $375k in January to $385k in February. In addition, median home values continue to climb year-over-year:
January: The median sales prices rose 4.2%, from $360k in January 2024 to $375k in 2025.
February: median sales prices increased 2.1%, from $377k in February 2024 to $385k in February 2025.
As the Orlando Regional Realtors Association President, Lawrence Bellido, stated in February’s report, "With Orlando's housing inventory on the rise, buyers have more options, which has contributed to a recent increase in overall sales and pending sales as we approach spring. Now is a great time for buyers to take advantage of the increased options, negotiate favorable terms, and find the perfect home before competition heats up.”
Inventory and Selling Times: A Shift Toward Balance
In the past few years, homebuyers frequently ran into low inventory of houses for sale and often dreaded bidding wars for potential properties. The seller market has cooled, making it more challenging to quickly sell a property.
Available Inventory
Buyers now have more options as housing inventory continues to grow. In February 2025, Orlando inventory reached 12,400 homes, a 44% increase from February 2024. This marks the highest number of properties on the market since 2015.
Average Sell Time
In addition to more inventory, houses are also taking longer from listing to closing.
Throughout 2024, days on the market fluctuated between 50 and 60 days. That average jumped to 74 days in January 2025 and 76 days in February 2025. The latest numbers from March 2025 suggest 112-116 days from listing to close. For reference, this time last year the duration from listing to close was 87 days. Keep this in mind if you are planning to sell your investment property because you will likely have to cover many months worth of expenses to cover while you are trying to sell.
The reality is buyers have more options and better negotiating power with sellers eager to close on their properties.
Current Orlando Rental Market
Prices for existing rental homes have remained relatively consistent in Orlando suburbs like Ocala and Palm Bay. However, Orlando has seen a slight decline of ~$100/month compared to 2024.
Despite the slight drop in rents, demand for rental properties remains strong. Orlando area rentals see fewer days on market (DOM) on average (29 days) than the national average (35 days).
Rental Demand Forecast
Orlando real estate investors often have to take the long view. While today’s rental rates appear relatively flat, the economic growth should positively impact the rental market as we enter the spring and summer months.
Growth in New Jobs in Orlando
Demand for rental properties can partly be attributed to the ongoing job growth throughout the state, which added 256k jobs in December 2024. In fact, new jobs created in Florida account for 1 in 14 of the new jobs throughout the nation. Even more encouraging news:
Year-over-year private sector job growth in Florida stands at 1.3%, outpacing the national average of 1.2% from January 2024 to January 2025.
Orlando leads the country’s metro areas in private-sector job growth, with 393k jobs posted online over the past year.
In January 2025 alone, Orlando added 113,600 jobs, growing 1.3% year-over-year, outpacing the national average.
Meanwhile, the state’s unemployment rate has stayed below the national average for 51 straight months.
Migration Trends: More People Moving to Orlando
Partly because of those new job opportunities and the amazing weather, Orlando’s population continues to grow. New census data shows that 70k+ people moved to the Orlando metro area in 2023 and 2024. That places Orlando as the 7th fastest-growing city in the United States.
According to U-Haul data, Florida State is also the country's 4th most popular moving destination. In addition, seven cities in central Florida dominated the top 25 fastest-growing metros, including:
Lakeland (#4)
Palm Bay (#8)
Jacksonville (#11)
Tampa (#12)
Sarasota (#15)
Fort Myers (#16)
Daytona Beach (#23)
What This Means for Real Estate Investors
Orlando real estate continues to be a solid investment.
Rising property values are a good sign for long-term investments.
More inventory in the housing market with longer list-to-close timelines means better deals and more choices.
Rent demand remains steady despite minor price drops.
Strong job growth continues to bring new residents, and there is increased demand for rental properties.
Whether buying your first investment property or expanding your portfolio, our full-service brokerage offers expert advice and comprehensive services. Call us at 321-947-7653 to learn more.
