Orlando Housing Market Added $52B in Value in 2021

Orlando housing market added $52B in value in 2021. Here’s why it will keep growing

Metro Orlando’s housing market is worth $283 billion after a $52 billion value bump last year, according to data released by Zillow Group Inc. on Jan. 28.

Rapid price increases and a flurry of new home construction across the region in 2021 contributed to this jump in the local residential real estate market’s value. The housing market value is an important metric, because it reflects the strong demand in Orlando’s new construction and resell markets.

Meanwhile, housing professionals expect building and price appreciation to grow this year in metro Orlando, further ballooning the value of the local housing market.

After an “unprecedented year” in 2021, the Orlando Regional Realtor Association expects a seller’s market to persist in Central Florida throughout 2022, the association’s 2022 President Tansey Soderstrom told OBJ.

That’s mostly due to rock-bottom levels of home inventory that will keep the market competitive. Metro Orlando home prices are forecasted to rise 5.4% this year, according to Realtor.com.

Home construction activity is buzzing, too. After the value of new Orlando housing construction starts surged 18% to $7.8 billion last year, local homebuilders are prepared for a 20%-30% increase in production in 2022, said Greater Orlando Builders Association CEO Chassity Vega.

Alternatively, University of Central Florida Institute for Economic Forecasting Director Sean Snaith projects local housing starts will drop from 189,763 in 2021 to 169,678 in 2022. However, he expects the number of starts this year to surpass 2020’s total of 156,763 starts.

Orlando ranks the 27th most valuable housing market among the 50 biggest U.S. metros, putting the region in the middle of the pack. Of course, markets with pricier homes rank higher; New York City is No. 1 with a housing market worth $3.5 trillion. Miami ($861 billion) and Tampa ($407 billion) beat out Orlando, which ranks higher than Jacksonville ($196 billion).

Nationwide, the housing market gained a record $6.9 trillion in value in 2021. A historic year for prices and construction likely will be followed by a less competitive year in 2022, Zillow Senior Economist Jeff Tucker said in the report.

“Not only did prices rise faster than ever, but more homes were built than in any year since 2007 as builders raced to meet demand… This year is likely to be less competitive for buyers, but it will continue to be a sellers’ market.”

The metro Orlando housing market ended the year on a strong note. Existing home sales were up 4% month-over-month to 3,820 sales in December. The month also featured the highest median home price the Realtor association ever recorded for a month: $340,000.

Likewise, local residential construction enjoyed a strong end to 2021. In December, $696 million worth of residential construction was started in metro Orlando, according to Dodge Data & Analytics. That was up 14% from $610 million in December 2020, Hamilton, New Jersey-based Dodge reported.

The local housing market’s performance is important to the economy. In fact, each Florida home sale has an estimated local economic impact of $90,300, according to the National Association of Realtors. In addition, the housing market often is considered a reflection of the local economy’s overall health.


Source: “Orlando housing market added $52B in value in 2021. Here’s why it will keep growing,” Orlando Business Journal