A soaring economy and strong rental demand make this metro one of the best investment markets.
IRVINE, Calif., March 17, 2017 – HomeUnion, an online real estate investment management firm, has named Orlando the second-best investment market in the nation based on opportunities for growth. It is also the fourth-best market by rental demand, as well as the third-best market by upside potential ranking. HomeUnion’s Opportunity ranking measures the strength of metro areas across the country based on cap rates and entry prices for investment housing, as well as regional job growth. Cap rates are the relationship between an investment property’s net operating income (rent minus expenses) and the market value of the property. The firm’s Upside Potential ranking analyzes markets that were slower to the recovery, and therefore present strong opportunities for investment.
“Most of Florida’s major real estate markets are performing remarkably well,” says Steve Hovland, director of research at HomeUnion. “Orlando’s economy is the second-strongest in the state, with a projected 39,0000 jobs to be added by year’s end. As a result, demand for rentals will remain intense, and we expect vacancy to decline to a scant 2.8 percent. Landlords in the metro area will benefit from these tightening conditions by raising rents 3.5 percent this year.”
Here are some key takeaways on Orlando’s investment housing market:
- The metro’s year-over-year employment growth is projected at 3.2 percent this year, compared to 1.7 percent growth nationally.
- Single-family rental (SFR) vacancy in Orlando is expected to drop by 300 basis points to 2.8 percent.
- Rents for Orlando SFRs are anticipated to grow to $1,469 per month, up 3.5 percent from 2016.
- Prices for investment homes in Orlando ended 3Q 2016 at $164,900, with over 65 percent of investors choosing to use leverage.
For more information on the state of the U.S. investment housing sector and market conditions in 29 metros nationwide, download the 2017 National Single-Family Rental Research Report.
HomeUnion is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Communications Manager, HomeUnion