Florida is growing faster in terms of employment growth than the rest of the U.S., which is good for Florida real estate. The three major drivers of the state’s economy are 1) Florida’s business climate, including real estate sales; 2) the U.S. economy and financial market trends; and 3) the global economy.
The land of Mickey Mouse and Harry Potter World takes the No. 1 spot this year. Orlando home prices increased 9% in 2017, hitting an average of $247,550. Nevertheless, Local Market Monitor still judges the market as fairly valued and forecasts prices will increase 35% by the start of 2021.
Florida has continued to grow at a near nation-leading pace. The state’s population grew by 1.8% in 2016, far more than the 0.7% national population growth rate. Like many of the fastest-growing states, Florida’s rapid population growth was largely due to migration.
“Orlando International is busier than we have ever been before, we are also now the busiest airport in the state of Florida. With our balanced increase in both domestic and international visitors, 2017 proved to be yet another record breaking year, reflecting the dynamic business activity of the region,” says Frank Kruppenbacher, Chairman of the Greater Orlando Aviation Authority.
Job creation in 2017 injected a significant chunk of spending money into the region’s economy with projected direct impact of an additional $2.2 billion in annual payroll added by the growing labor force. That spending power is expected to add $3.4 billion to the gross regional product (GRP) and new state and local tax revenue of $236.9 million.
AV Homesis introducing a new tech solution to solve an old problem in real estate. "Buyers tend to buy what they can see," director of architecture Stephen Yerrakadu told GrowthSpotter. "If someone is looking at a piece of paper, it's not really tangible." This gives everyone the opportunity to look at this house, which has yet to be built, and to start visualizing what the experience is going to be like for the buyer and the potential homeowner.
Park Square Homes will launch a trio of new subdivisions on Polk County's U.S. 27 corridor this year, all designed to appeal to first-time home buyers. The Orlando-based home builder has already started clearing land for two communities. Goldenridge, near the intersection of Holly Hill Road and Davenport Boulevard, has 131 lots. Trinity Ridge, which has 62 lots, is closer to Walt Disney World and U.S. 192.
Buyers from northern U.S states, Canada, the United Kingdom and Brazil are drawn by high-end amenities. With more bedrooms than some motels, houses can accommodate owners’ extended families and generate rental income.
Eagle Creek Development Corp. filed a Development Plan on Monday that calls for 40,600 square feet of retail on 8.29 acres, part of Lot 11 within the Eagle Creek PD. Encompassing more than 558 acres and in development since 2000, Eagle Creek is a master-planned community with the potential for 3,500-plus units with approximately 1,500 homes having been built thus far,.
Median price was driven during 2017 primarily by a combination of strong buyer demand and very low inventory levels, but expect prices to continue their upward trend in 2018, albeit at a slower rate. In addition, Orlando's annual median home price ($220,000) is 10.0 percent higher than the 2016 annual median price ($200,000) thanks to another 12 consecutive months of year-over-year price increases.