Orlando Sub Markets with Greatest Appreciation Potential

11 Replies | Orlando, Florida

Thanks to all who have helped me with my previous posts. I asked a similar question about 1/2 year ago, but now I'd like to be slightly more specific.

What sub-markets in Orlando do you think have the greatest potential for appreciation?

Thanks in advance!

Eatonville. I am not even kidding. As Maitland and Winter Park continue to grow the edges of Eatonville will have to start appreciating and gentrifying eventually. Not anything short term, but maybe in the next 5 years I think.

Pat,

As an Investor and Realtor, I can tell you that aside from great school districts which always do well, the western area of Orlando (which is on the other side of Disney) is poised for huge development. This is really the only vacant land close to metro Orlando that can accomodate the large population growth that is expected over the next 10 years. Existing developed areas in that region include Winter Garden, Davenport and Clermont. The local planning department is planning to build schools to accommodate 230,000 children over the next decade; just imagine how much housing is required to support this influx of families.

Hope the above helps.

Bobby,

Thanks, very interesting. I’ve been to Winter Park, but not Eatonville. I’ll have to give it a look and run the numbers.

Thanks@Chris Romany . Someone once told me that people in Florida don’t worry about school districts as much as other people do in other parts of the U.S. So I definitely appreciate your perspective – it definitely acts as a rationale counterweight.

Based on my limited knowledge, I agree with your assessment of the area west of Orlando. Do you think this added home supply will help hold down home value appreciation and rents? Or do you think it will have the opposite effect?

Thanks for the link @John Kent . I've briefly taken a look at this site before, but I'll be sure to take a closer look. I just dabbled in it for a few minutes -- it definitely looks useful.

Thanks again.

In addition to what was mentioned. I think it's worth taking a look at the downtown market west of I-4.

With the additions of the Orlando Magic Entertainment Complex, the proposed "Creative Village" (13,000 UCF & Valencia student campus) and the self-funded Orlando City Soccer stadium there is a ton of potential there. 

This area should grow a lot in the next 5 years. I work with a lot of multifamily developers looking at this area very closely. 

In case anyone is wondering from a commercial perspective, its worth taking a look.

What sub-markets in Orlando do you think have the greatest potential for appreciation?

That is a great questions,  my observations is, why try to find that so called sub-market where other investors (competition) will be?

The only "sub-market" you should be concerned with is THE EQUITY PROFIT SUB-MARKET, who cares where the real estate is if there is an EQUITY potential? 

Equity and Cash Flow is King in this crazy real estate business. Forget about buying real estate ------THINK -----Equity....... negotiate for it, demand it, don't

As for APPRECIATION -----Forget about it.  You create appreciation when you buy, why wait for APPRECIATION to make you wealthy (as we get older, we don't have time to wait, forced equity is the art form of real estate----become an equity artist.......who knows what waits for us tomorrow?)

Charles

The answer to your question, @Pat L., is that it depends. The expansion should help slow down appreciation a bit, as the inventory is supposed to increase. However, there is not a whole lot of low and middle class housing being built, so if this is the demographic that is moving to Florida, this new housing won't make a dent and prices will continue to increase. The manipulated pace at which foreclosures are being brought onto the market (large phantom inventory) also complicates things too. So long story short, it is a guess as to where prices and rents will go. I think odds are that demand will continue to outpace supply, prices will rise, and then stall in a couple of years as salaries/wages are no where near keeping up with the pace of appreciation and inflation.

Thanks @R Derek Smith . I have not yet evaluated that area. I thought about investigating the "Creative Village" area when I was close by, but didn't. But now I'm thinking I should have.