While the housing market and economy of Orlando have been in steady recovery since the 2008 housing market crash and subsequent
recession, there are still some important
statistics investors should be aware of if they are planning on buying
property in the city and its environs.
Orlando has an overall vacancy rate of just under 18% for its rental properties. This may seem
like an alarmingly high figure at first glance; however, it’s worth noting that
vacancy rates are starting to fall in many areas of the city as the
local economy continues to improve and unemployment falls. An ideal vacancy rate is something in the 8-10% range, which indicates strong rental demand and a steady turnover of tenants.
It’s also worth remembering that Orlando is a big city and, like any
major metropolis, rental markets in different areas can differ widely in terms
of their performance. With this in mind, it’s important that you take
the time to investigate the location of the neighbourhood of the
property you wish to purchase.
Here are selection of popular, growing neighbourhoods and a brief
snapshot of what the rental market looks like in the area, and what it
means for you as an investor:
A pleasant neighbourhood in a relatively calm part of Orlando,
Rosemont North seems the ideal place to invest in property. Household incomes in the area are higher than 80% of surrounding Orlando, and its property values are a
reflection of this.
However, Rosemont north exhibits a vacancy rate that is higher than
the Orlando average at 23%. This is one of the highest vacancy rates of
any neighbourhood in the city and means that you should be wary of any
deals that seem too good to be true.
Higher vacancy rates are a common phenomenon in more affluent areas as the majority of residents will be in a position to buy their own home. Be aware of this, as you may find that a realtor tries to push a property on you that has had a bad history of attracting
New Malibu is another neighbourhood with a very similar issue. New
Malibu is also one of the richer areas of Orlando, and there are many
beautiful properties priced in line with what you'd expect from an affluent, middle-class neighbourhood. However, New Malibu also has a high vacancy rate, at nearly 21%.
While this is still cause for some alarm, remember that these sorts of issues may lead to opportunities as well. If a property has a bad rental history, investigate if there would
be anything you could do as an effective property manager to make the
property more appealing. You might get a great deal on a property and be
able to increase its yields with the right improvements.
Located closer to the centre of the city than New Malibu or Rosemont
North, Thornton Park has vacancy rates that are more in line with the
city’s average vacancy rates.
In Thornton Park the vacancy rate is about 17%, which means that
purchasing property in this neighbourhood still comes with a certain
degree of risk regarding vacancy, but that risk is no higher than it
would be most other parts of Orlando.
To make wise investments, you need to consider all of these factors
when you are researching potential investments. Nothing is worse than
buying a property and being unable to make money from it because you struggle to attract tenants to the home.