According to the Florida Association of Realtors and CNN Money.com, Orlando is one of two Florida Cities in the "Top 6 Cities Where Buying Beats Renting."
"ORLANDO, Fla. - March 30, 2011 - Cities hard-hit by the housing market crash now offer some of the best buys in real estate - places where it makes more sense to buy than rent, according to a new report from Deutsche Bank. The study measured affordability by the share of income that residents pay to own a home, as well as the cost of owning vs. renting.
2. Orlando
Rent as a percent of after tax mortgage payment: 137.2 percent
Median home price change, 2006-2010: -51.3 percent
Orlando saw a larger drop in home prices during the past year than any of Florida's other metro areas, according to a Florida Realtors® report cited by the Orlando Sentinel.
5. Tampa-St. Petersburg
Rent as a percent of after tax mortgage payment: 131.6 percent
Median home price change, 2006-2010: -41.4 percent
Tampa-St. Petersburg was one of the most overbuilt areas during the housing boom, and it ranks ninth in the country for foreclosures. But it's still an attractive spot for retirees, and with dropping home prices it's now more affordable to own than rent here."
What I have observed locally is an intensely competetive rental market, possibly due to the number of families forced to rent after short selling or being foreclosed upon. The lack of supply has driven rental prices up. Historically, when rents rise over monthly mortgage costs, home prices begin to climb as well. In my local market (southeast Orlando, Lake Nona), buyer demand is currently outpacing supply with inventory down more than 75% of what it was during the worst of the crash.
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