Orlando Real Estate Market Analysis

The city of Orlando is home to more than 307,000 people as of 2020, up by 9.5% since the previous year. Experts estimate that the population will grow by an average of 2% every year. Thus, traditional rental investors will have an easy time finding a tenant in the Orlando real estate market. Airbnb rental investors will not be left behind, either. The city expects to welcome over 70 million visitors as tourism bounces back to meet pent-up travel demand. Short term rental owners will definitely see their Orlando investment properties booked almost 100% of the time.

Orlando Airbnb with its booming tourism industry has experienced massive growth over the years. It was one of the ten most booked cities at the beginning of 2018 and continues to be a popular Airbnb destination. Because of this, city officials legalized short term rental properties in the summer of 2018. But there was one big exception: non-owner-occupied Airbnb investment properties were outlawed. The only way an Airbnb real estate investor can legally operate is by acquiring a duplex or another multi family home, living in one unit, and then renting out the other.

The owner of an Airbnb Orlando rental property must be on-site during the guests’ stay. They are also not allowed to have more than one booking at a time. Up to two guests can stay in a room. Lastly, only four non-family members at most can stay in an Airbnb rental property at one time.

Orlando Airbnb hosts will also have to register with the city at an initial fee of $275 for the first year and $125 for every year after that. There are also lodging taxes in place that hosts will have to collect from guests and remit to the city. Most of the major short term rental platforms automatically charge these from the guests and remit to the city, county, or state on behalf of the hosts.

Any Airbnb regulation put in place by the city will not override any existing neighborhood or HOA rules. So make sure that the Orlando neighborhood you are buying a property in allows Airbnb rentals before committing to your purchase.

Traditional rent prices in Orlando rose by 11% over the past year according to Mashvisor’s data as of January 2022. About 64.6% of housing units are occupied by renters, which is no surprise as the price to rent ratio remains high at 21.

A studio apartment in the Orlando real estate market has a median price of $523,812. But it can be rented for $1,923 per month on average, according to Mashvisor’s data. Interestingly, a one-bedroom home is priced lower at $215,584 (median) and can be rented for $1,061 per month on average. Meanwhile, a two-bedroom home has a median property price of $382,814 and an average rental income of $1,388.

The most likely reason that an apartment costs more than a single-family home is the age of one- and two-bedroom single-family homes for sale. Meanwhile, many studio apartments have been built more recently and come with amenities not found in other property types. Those who want to buy an Orlando real estate investment of either size have to weigh the property price against the potential profit.