There has been a tremendous amount of rent growth in the Florida rental market. That means investing in Orlando is an excellent idea. Today, we’re telling you why.
Home Ownership and the Desire to Rent
The nation’s home ownership rate has been falling over the last 10 years. We have seen the strongest and longest period of rental growth rates since the late 1980s. The demand for rental housing continues to increase. Most people are still choosing to rent rather than buy, and they are provided with great housing choices in all demographics. We believe a lot of this may be due to the lack of a down payment or poor credit. Right now, 37 percent of the population is renting. In addition to financial reasons, there’s also convenience. People crave a no-maintenance lifestyle, or they don’t want to be tied to a house if there’s a career change in the future or a desire to move. This is especially true of millennials, who now make up a huge chunk of the rental pool. The average age of rental households is about 30-64 years old.
Orlando Real Estate Rental Market Growth
Vacancies are at historic lows, and rents are on the rise. Because millennials continue to contribute to the population of renters, it’s a good idea to have a mix of single family and multi-family properties in your rental investment portfolio. Remember that baby boomers are also retiring, and they will begin downsizing, selling their homes, and entering the rental market. While the market is strong in all areas, there is a concern that rents are rising faster than wages. The housing prices are rising too. This means home ownership is stagnant for low and middle income earners.
Florida on the Forbes List
According to Forbes, 7 Florida cities made the 2016 Best Buy Cities in the Top 20 housing markets. The number 2 city is right here: Orlando. Other cities on the list include Fort Lauderdale, Northport, Sarasota, Tampa, and Jacksonville. Each of these cities can boast job growth, population growth, and anticipated home price appreciation. This shouldn’t be surprising. Florida is attractive for retirees, second home buyers, and investors. Home prices have gone up 3 to 9 percent over the past year.
Dip your toe in the pool. Investing in Florida is a great idea right now. For help with your investment plans and anything pertaining to Orlando property management, please contact us at Hampton & Hampton Management and Leasing.