Rent remains high in Central Florida; home sales at lowest point since 2009 (2024)

STEWART: RENT CONTINUES TO INCREA NATIONWIDE, ESPECIALLY IN FLORIDA. ACCORDING TO REALTORS, PRICES ROSE 36%. NANCY: AS LIVE JOHNSON REPORTS, THE STATE OF THE HOUSING MARKET IS NOT MAKING IT EASY TO BUY. >> MANY OF US HAVE HEARD THE RENTAL MARKET HORROR STORIES. >> I HAD ONE BUYER WHO IS CURRENTLY LOOKING BECAUSE HER LANDLORD RAISED HER RENT BY $600. >> A BUNCH OF MY NEIGHBORS HAVE BEEN TELLING ME THAT THEY HAVE INCREASED THE RENT BY $400-$500. >> ACCORDING TO A REPORT FROM RENT.COM, THE MEDIAN ASKING RENT IN METRO ORLANDO WAS $2,107 PER MONTH IN JANUARY 2023. THAT’S A 4.4% INCREASE YEAR OVER YEAR >> IT JUST DOESN’T SEEM FEASIBLE ESPECIALLY WHEN THE MARKET IS TRYING TO STABILIZE AT THIS POINT. >> ACCORDING TO THE MORTGAGE REPORTS, THE AVERAGE MORTGAGE RATE WENT FROM 2.96% IN 2021 TO 5.34% IN 2022. IN ORLANDO, THAT’S CAUSED HOME SALES TO REACH ITS LOWEST POINT SINCE 2009. WHILE MANY RENTERS ARE HOPING TO BUY IN THE NEAR FUTURE, SOME ARE WAITING FOR THE MARKET TO STABILIZE THE ORLANDO REGIONAL REALTOR ASSOCIATION RELEASED A STUDY THAT SHOWS OVERALL HOME SALES FELL 24.9% FROM DECEMBER 2022 TO JANUARY 2023. HOUSES SITTING ON THE MARKET FOR 78.1% LONGER IN JANUARY 2023 COMPARED TO JANUARY 2022 >> NOW, OUR DEMAND IS PRETTY STEADY WITH INVENTORY, BUT WITH RATES, PEOPLE HAVE DECIDED TO WAIT. >> PRINCE BELIEVES RENTAL PRICES WILL LOWER ONCE THE HOUSING MARKET STABILIZES AND SHE SAYS THE BEST COURSE OF ACTION FOR POTENTIAL BUYERS IS TO PARTNER WITH AN AGENT WHO KNOWS REPUTABLE LENDERS. >> REALLY GOOD LENDERS ARE GOING TO HAVE THE ABILITY TO ADVISE YOU ON RENT-TO-OWN PROGRAM

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Rent remains high in Central Florida; home sales at lowest point since 2009

Liv Johnson

Reporter

According to Florida Realtors, there was a 36% increase in rental prices from the start of 2020 to the end of 2022, and many landlords continue to hike the rates. "I have one buyer currently looking because her landlord raised her rent $600/month," realtor Nicole Prince said."A bunch of my neighbors have been telling me that they have increased the rent by $400-500/month," said Ela Pala, who's been renting in Orlando for the past five years.According to a report from Rent.com, the median asking rent in metro Orlando was $2,109 per month in January 2023, which is a 4.4% increase year over year. "It just doesn’t seem feasible, especially when the market is trying to stabilize at this point," Pala said.The Mortgage Reports state that the average mortgage rate went from 2.96% in 2021 to 5.34% in 2022, causing home sales to reach their lowest point since 2009 in Orlando. The Orlando Regional Realtor Association released a study showing overall home sales fell 24.9% from December 2022 to January 2023, and houses sat on the market for 78.1% longer in January 2023 compared to January 2022."Now, our demand is pretty steady with inventory, but with rates, people have decided to wait," Prince said. She believes rental prices will lower once the housing market stabilizes. The best course of action for potential buyers is to partner with an agent who knows reputable lenders and can find rent-to-own programs.Other top headlines Viral post leads to inspectors finding nearly 20 dead roaches at Florida chicken shopDocs: Mom of 9-year-old Orlando girl shot, killed woke up to daughter screamingTeen accused of brutally attacking Flagler teacher's aide to be prosecuted as adult

ORLANDO, Fla. —

According to Florida Realtors, there was a 36% increase in rental prices from the start of 2020 to the end of 2022, and many landlords continue to hike the rates.

"I have one buyer currently looking because her landlord raised her rent $600/month," realtor Nicole Prince said.

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"A bunch of my neighbors have been telling me that they have increased the rent by $400-500/month," said Ela Pala, who's been renting in Orlando for the past five years.

According to a report from Rent.com, the median asking rent in metro Orlando was $2,109 per month in January 2023, which is a 4.4% increase year over year.

"It just doesn’t seem feasible, especially when the market is trying to stabilize at this point," Pala said.

The Mortgage Reports state that the average mortgage rate went from 2.96% in 2021 to 5.34% in 2022, causing home sales to reach their lowest point since 2009 in Orlando. The Orlando Regional Realtor Association released a study showing overall home sales fell 24.9% from December 2022 to January 2023, and houses sat on the market for 78.1% longer in January 2023 compared to January 2022.

"Now, our demand is pretty steady with inventory, but with rates, people have decided to wait," Prince said.

She believes rental prices will lower once the housing market stabilizes. The best course of action for potential buyers is to partner with an agent who knows reputable lenders and can find rent-to-own programs.

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I'm an expert in real estate and housing market trends, and my extensive knowledge in this field allows me to provide insightful analysis on the article titled "STEWART: RENT CONTINUES TO INCREA NATIONWIDE, ESPECIALLY IN FLORIDA."

The evidence presented in the article underscores the challenges faced by renters and potential homebuyers, particularly in the Central Florida region. According to the information provided:

Rental Price Increase:
- Florida Realtors reported a substantial 36% increase in rental prices from the start of 2020 to the end of 2022.
- Testimonies from individuals, including realtor Nicole Prince and renter Ela Pala, highlight the significant rent hikes experienced by tenants, ranging from $400 to $600 per month.
Current Rental Market Conditions:
- Rent.com's report indicates that the median asking rent in metro Orlando was $2,109 per month in January 2023, reflecting a 4.4% increase year over year.
- Renter Ela Pala expresses concern about the feasibility of such high rents, especially as the housing market attempts to stabilize.
Mortgage Rate Impact on Home Sales:
- The Mortgage Reports reveal a substantial increase in the average mortgage rate, rising from 2.96% in 2021 to 5.34% in 2022.
- This spike in mortgage rates has contributed to a decline in home sales in Orlando, reaching their lowest point since 2009.
Housing Market Trends:
- The Orlando Regional Realtor Association's study demonstrates a significant decline in overall home sales, down by 24.9% from December 2022 to January 2023.
- Houses are reported to be sitting on the market for 78.1% longer in January 2023 compared to January 2022.
Impact on Buyer Behavior:
- The increased mortgage rates have led potential buyers to adopt a cautious approach, with many deciding to wait before entering the housing market.
- Nicole Prince advises potential buyers to partner with agents who have knowledge of reputable lenders and can assist in finding rent-to-own programs.

In conclusion, the current state of the housing market in Central Florida, as outlined in the article, is characterized by rising rental prices, increased mortgage rates, decreased home sales, and a cautious approach among potential buyers. The challenges in the rental market are expected to alleviate once the housing market stabilizes, according to the insights provided by realtor Nicole Prince.