Thinking of buying a home in the Orlando area but not sure if it’s a smart investment? Good news… Orlando ranks among the top housing markets in America for predicted return on investment! That’s right, a recent study by Forbes analyzed some of the top real estate markets in the country for ROI and Central Florida’s favorite city came out on top!
What Makes a Good City for Buying a Home?
First and foremost, you want to be sure you can make your money back—and more—when you decide to sell your home. However, we’re not talking about a quick flip home, but a medium to long term investment. Markets with these qualities see decent home prices, better than average job growth, and of course, predicted steady growth in home values.
What Specific Factors Make a Good Home Market?
This 2018 study by Forbes took five main factors into account: on-year job growth, three-year population growth, one-year home price growth, three-year home price forecast, and affordability. Affordability was a major factor and was calculated by comparing the home price versus the average income of the area. This ensured that homes were selling at their value, rather than being underpriced (suggesting low job growth) or overpriced (making them unaffordable).
Orlando Ranks the #1 City to Buy a Home in 2018
The overall results of the study listed Orlando in the #1 spot! That’s because the city has seen major job growth (7.1% over the last two years), good population growth (7.6% over the last three years), and a predicted home price increase of 35% by 2021. Plus, with home prices still 22% below the national average, it’s a highly affordable market.
Other Top Cities for Buying a Home
Other cities that performed well in the study were Provo, UT, Jacksonville, FL, Raleigh-Durham, Ogden-Clearfield, UT, and Nashville. Cities that didn’t perform so well were some of the tech-based markets, like Austin and Seattle, where home prices have skyrocketed to become overly inflated and unaffordable.
Orlando Performs Well in Other Studies, Too!
Another study by Business Insider for best cities for buying an investment home also ranked Orlando in the #1 spot, again for its good job growth, population growth, and increase in home values. So whether you’re buying a home for yourself, or seeking a rental property, prospects are good in the Orlando area!