Why are properties on Orlando priced so low?

Question

I am looking at properties in Orlando and notice that they are quiet low especially compared to comparable properties in other cities? Why is this? Even properties near the home parks are low compared to what you would find in SoCal or the UK.

Why is this? I would have thought that given all that Orlando has to offer they would be priced higher.

Is there any chance that there would be a correction in the future and Orlando prices would rise?

Tyler Gibson · Answer

@Catherine Underwood Orlando prices are on the rise they are as high if not higher than they were before the housing crash of 2008. The crash really did a number on home values in Orlando in fact it was one of the harder hit areas in the USA. Some people look at the prices and think they are high others think they are low it just depends on what you compare them to. Orlando home prices are high compared to lets say rural Ohio. Prices are low compared to California. It is all relative. The last thing that I will say is that like in any market there are some cheap properties in not so nice areas and very expensive ones in really nice areas. If you want to know anything more specific about my market let me know.

Alice Horn · Answer

If you are looking at vacation rental properties, it's a supply issue. There are over 65 thousand VR properties in the Orlando/Kissimmee/Davenport area. A property that is a bit older and in need of a refresh can often be purchased for a great price, since many buyers are attracted to newer homes and communities. That being said, if you can find an older property in a stable resort close in to Disney, and redecorate to a high standard, you have a great investment property on your hands. We are property managers and marketers and have seen by far the best ROI in our portfolio on homes that fit this profile.

Andrew Ashby · Answer

@Catherine Underwood, I have to say I agree with @Tyler Gibson. It's all relative, but Orlando's prices are high historically. However, cash flowing deals can still be found on the fringes of Metro Orlando.

Jason Mileshko · Answer

The east coast, especially FL has much cheaper real estate.

Elise Marquette · Answer

Where are you looking in Orlando? It varies widely. Winter Park houses are a lot more expensive that Kissimee houses. The problem with Orlando in general is that it is such a service based economy due to the tourism and service industry. Since so many people work in those industries and don't make a whole lot of money doing so, there isn't as much demand for higher priced houses. However, that may mean there's room to cash flow in the $800/mo rent range or AirBnB. Personally, seasonal income worries me but you may have some luck picking something up in Kissimee area and renting it out to a Disney employee

JD Martin · Answer

? Priced low compared to what? I just came back from there and looked at some RE and I think it's super high right now. Yeah, priced low compared to San Francisco. Virtually everywhere in the Orlando area is in proximity to the parks; there's no mountains to hem things in like Southern Cal.

When you say correction, do you mean is it likely that Orlando prices will skyrocket from where they are now? No way, in my opinion. Prices there are probably 100% higher than they were even after the market started coming back.

Why are properties on Orlando priced so low?

Why are properties on Orlando priced so low?

Most Popular Reply

6 Replies