The Orlando vacation homes market has been hit hard recently and the industry is going through a major correction stage. Below we have outlined five (5) major changes which we believe are going to happen:
1) Less vacation home properties- Right now there are far too many vacation homes in the Central Florida area. Did you know there are almost as many
Kissimmee vacation homes as there are Kissimmee hotel rooms? It's true. The market really started to get out of hand in 2002, through 2005 when builders were building homes as fast as they could and investors were buying these properties site unseen. As of right now there are over 20,000 vacation homes in the Central Florida area, and we expect that number to drop to 12,000 to 14,000 units.
2) Less Vacation Home Property Managers- Right now there are over 700 property managers specializing in managing vacation homes. As the number of vacation home rental units go down we expect the number of property managers to go down as well. The healthy number should be around 200 to 250.
3) Nightly Rates will increase- If you are looking for a good deal on an Orlando vacation home you can definitely find one. Right now, the average 3 bedroom vacation home with a pool is just over $100 a night. Now we expect these rates to rise when the number of vacation homes in the market place decreases (the law of supply and demand).
4) Vacation Home Communities will Thrive- The communities with strong HOA's and the ones which offer resort activities such as: basketball courts, swimming pools, computer rooms, 24 hour guard service, and gated communities are going to do extremely well in the future.
5) Nicer vacation homes- There are a lot of really nice vacation homes in the Kissimmee area don't get me wrong; however, there are some which need a little TLC. The ones that need the work are primarly owned by investors or individuals who hadno business owning a vacation home. The sad truth is these people have put no money to put back into their property and it has declined fast. In the near future, most of the homes which need work will be reposed and sold and fixed up again.
The real winners in this downturn of vacation homes in Kissimmee is the visitors to Central Florida. There will be nicer homes to rent, more professional property managers, and communities which offer more services.