It’s no secret that the Sunshine State houses many of the best real estate markets in the country. Among some of the most common markets people consider when investing in Florida real estate are Orlando, Miami, and Tampa. However, there are plenty of hidden real estate investment opportunities in the state that many investors are not aware of. One such opportunity is the topic of this blog: the Kissimmee, Florida real estate market. How is the Kissimmee housing market performing in 2019? What factors make it such a worthwhile hidden investment opportunity? Read more to find out!
Related: Buying Rental Property in Florida Can Make for a Great Investment in 2019
Kissimmee, Florida Real Estate Market: The Data
Whenever an investor is deciding on buying an investment property or analyzing a housing market, the best place to start is the proper real estate data. So, let’s take a look at the Kissimmee real estate market data, provided by Mashvisor’s investment property calculator (which you can learn about by clicking here!):
- Median Property Price: $252,297
- Price-to-Rent Ratio: 14
Traditional
- Rental Income: $1,482
- Cap Rate / Cash on Cash Return: 1.6%
Airbnb
- Rental Income: $2,865
- Cap Rate / Cash on Cash Return: 5%
- Occupancy Rate: 75%
Why You Should Invest in Kissimmee Real Estate
What can we make of the Kissimmee, Florida real estate data? Quite a lot, actually! When combining this data with a few other statistics, it becomes clear why buying an investment property in the Kissimmee real estate market is an excellent investment. Here are seven reasons why you should invest in Kissimmee properties.
1. Affordable Real Estate Investment Opportunities
Inexpensive real estate is a hallmark of a desirable investment market. This is a trend that the Kissimmee housing market maintains very well. Kissimmee’s median property price is $252,297. This is in the ballpark of the state median of $233,300 and is significantly lower than the US median of $315,300. The affordability of investment properties for sale in Kissimmee, FL, which is a common feature of Florida real estate, is one of the reasons why the Kissimmee real estate market is a terrific hidden investment opportunity.
2. Profitable for Both Rental Strategies
When profitability is paired with affordability, you have the ultimate incentive for buying an investment property. Not only is the Kissimmee housing market money-making, but it is also lucrative for both long-term rentals and vacation home rentals. As is the case in most rental markets, Airbnb Kissimmee is more profitable than traditional investing. Nonetheless, both rental strategies are profitable and worthwhile for a Kissimmee real estate investor.
3. A Lot of Demand
Simply buying an investment property doesn’t mean you’ll be making money in real estate. Investors need to make sure their investment properties draw consistent demand from prospective tenants. Fortunately, the Kissimmee real estate market draws such demand for both its Airbnb Kissimmee vacation home rentals and long-term rentals. The city boasts an exceptional Airbnb occupancy rate of 75%, which is one of the highest rates in the US. As it pertains to traditional investing, 61% of the city’s residents are renting out a house. No matter the strategy, there will always be a demand for rental properties in the Kissimmee housing market.
4. Strong Florida Economy
The Kissimmee real estate market is also benefiting from the city’s strong economy. The city’s unemployment rate is 3.5%, which is lower than the 3.9% of both Florida and the US. Kissimmee has had a job growth rate of 3.9% since last year, which is much higher than the nation’s 1.6% during the same time period. Kissimmee’s job growth isn’t stopping just yet. Its expected growth for the next 10 years is 45.5%, which is much higher than the national 33.5%.
5. Population Growth
Along with the strong economy comes population growth. As a result, the Kissimmee, Florida real estate market is gaining more tenants and residents. The city has had a population growth of 14.89% since 2000. More people are settling in the city, especially since it is near Orlando. With the higher population growth, property investors can expect to find more tenants renting out a house.
6. High Appreciation for Long-Term Rentals
Rental income isn’t the only form of profit real estate investors can generate from rental properties. Appreciation, or the increase of a property’s value over time, is another form of profit, particularly for long-term rentals. The Kissimmee real estate market has high rates of appreciation, landing in the top 40 percent in the US. The cumulative appreciation in Kissimmee over the last 10 years has been 19.97%, with an average of 1.84% per year.
7. Airbnb Kissimmee
The final reason why you should consider investing in the Kissimmee real estate market is because of Airbnb Kissimmee. But before we talk about Kissimmee’s Airbnb success, we need to answer the question: Is Airbnb legal in Kissimmee?
Related: The 10 Best Places to Buy Vacation Homes in Florida in 2019
Fortunately, the answer is yes. Airbnb is legalized in Kissimmee. Some of the most important Airbnb regulations in the city are its Tourist Development Tax (6%), the Florida State Sales Tax (6%), and a conditional use permit. For more on Airbnb Kissimmee regulations, check out Airbnb’s help page about the city.
There are plenty of reasons why the Kissimmee real estate market is a hot scene for Airbnb vacation home rentals. The city’s location, for starters, is perfect for tourism. Kissimmee is just minutes away from Disney World and other major Orlando theme parks. It is also a mere hour and a half away from the Atlantic Ocean and the Gulf of Mexico and is situated along the shore of Lake Toho. These factors, and many more make the Kissimmee real estate market a rising star for Airbnb investment.
Interested in investing in the Kissimmee, Florida real estate market? Then click here! By doing so you’ll be able to start your 14-day free trial with Mashvisor and find the best houses for sale in Kissimmee, FL!