Orlando Oasis: Drawing Residents Away from Miami and New York
Trey Gravenstein | February, 2024
Orlando, Florida, is experiencing a surge in popularity among residents from cities like Miami and New York, driven by factors such as no income tax, favorable weather, and affordable housing. Millennials form the largest group moving to Florida, with Orlando surpassing other cities like Miami and Fort Lauderdale in appeal.
The housing market in Orlando is booming, offering more affordable homes compared to other Florida cities, attracting both first-time homebuyers and affluent individuals from regions like Los Angeles. The city’s population is steadily growing, reaching 307,573 in 2020, with an additional 19,415 residents from 2020 to 2023, ranking fifth among Florida cities in population change. Despite rising insurance rates in Florida, Orlando’s lower home prices mitigate the overall cost of living. The city’s expansion is evident, with a significant influx of new residents and construction of new homes in recent years.
Between July 2021 and July 2022, approximately 730,000 people moved to Florida, with millennials constituting the largest percentage. Most movers came from New York or California, leading to Orlando’s notable increase in popularity, ranking third in long-distance moves in 2023, up from ninth in 2022. The typical home in Orlando sells for $394,950, making it more affordable than Miami (averaging $500,000) and New York City (averaging $800,000).
A Zillow report from September showed Orlando’s housing market gaining 72.3% in value since 2019, reaching $382 billion as of June 2023. Around 140,000 of the nearly 739,000 people who moved to Florida between 2021 and 2022 came from California and New York, according to Census data.
Orlando is attracting individuals from these states seeking savings on luxury homes, with affluent neighborhoods selling rapidly. Despite challenges like rising insurance rates and increasing homeowners’ association fees, property taxes, and insurance costs, Orlando real estate agents predict further growth due to affordability and available space. In 2023, MoveBuddha ranked Orlando fourth in new-home construction, reflecting the city’s ongoing development.
Learn more about the favorable conditions of the Orlando area in FCPG’s Why Orlando packets.