Downtown Orlando Condominium 2024 Market Update
Market Shifts In Downtown Orlando
The Central Florida real estate market, particularly the Downtown Orlando condominium sector, has seen a significant shift over the past year. Once characterized by inventory shortages and fierce competition among buyers, the dynamics have reversed. As of 2024, inventory levels have surged across Central Florida, with Orange County experiencing a 54% increase in active listings compared to 2023. Downtown Orlando’s condominium market has been even more affected, with available units skyrocketing by 91%, nearly double the rate of Orange County overall. This influx of available properties has extended the time it takes to sell a condominium, with the average days on market increasing from 48 to 67 days. The heightened supply has also put downward pressure on prices, with the median sale price for downtown condos declining by 11%, from $314,725 to $280,000.
Factors Driving Increased Inventory and Price Decline
Rising Association Dues and Special Assessments
A key factor impacting both affordability and buyer interest is the notable rise in association dues. Following the Surfside condominium collapse in Miami, associations across Florida have been subjected to stricter regulations, requiring more frequent structural inspections, comprehensive repairs, and larger reserve funds. Additionally, insurance premiums for condominium buildings have surged, with some premiums doubling over the past 1-3 years. For instance, in 2021, monthly association dues for a 2-bedroom, 2-bathroom, 1,150-square-foot unit were approximately $553. By 2024, those dues had almost doubled to $950.58 per month. This increase forces buyers to account for higher dues in addition to their mortgage, taxes, and insurance, leading many to reconsider condos in favor of single-family homes or townhomes.
Cyclical Market Trends and Lower Sales
While the recent surge in inventory may seem unusual, it’s not unprecedented. In fact, years like 2015, 2016, and 2017 saw even higher levels of active listings than we’re seeing in 2024. Real estate markets are inherently cyclical, and while today’s market reflects increased competition, it remains healthy overall. Total sales of downtown Orlando condominiums in 2024 have decreased sharply compared to the boom years of 2021 and 2022,
falling by 34% to 50%. Yet this slowdown is a return to normal when viewed in the context of the past decade. Still, with more supply and fewer sales, prices have naturally declined.
Looking Ahead: Downtown Orlando’s Future Growth
Despite current market adjustments, Downtown Orlando remains a vibrant hub of development, ensuring that demand for urban living will continue to grow. Several exciting projects are in the works that will enhance the area’s desirability:
WestCourt Sports District: Developed by the Orlando Magic, this project will include retail, office space, and a luxury hotel, further adding to downtown’s vibrancy.
Creative Village: Home to a new college campus and the headquarters of EA Sports, this area is becoming a center for education, technology, and innovation, with additional planned developments.
Lake Eola Enhancements: The city’s iconic park is undergoing renovations, improving its amenities and making it an even greater draw for residents and visitors alike.
Edge on Church Street Station: This upcoming highrise residential and office tower will introduce significant retail space, reshaping the area and contributing to the evolution of Downtown Orlando’s skyline.
As the market naturally ebbs and flows, it’s important to remember the long-term value that Orlando’s downtown has always offered. Investors who maintain a long-term perspective are likely to see continued appreciation. Meanwhile, current buyers have a unique window of opportunity to secure prime real estate in one of Florida’s most dynamic urban centers.With major investments pouring into infrastructure, retail, and residential projects, the next wave of growth is imminent. While inventory and competition are elevated today, this is a temporary phase in Downtown Orlando’s broader growth story. The area remains one of the top destinations for those seeking vibrant city life, and its long-term outlook for both property values and economic development is incredibly bright.The developments underway are positioning Downtown Orlando as a hub of innovation, entertainment, and opportunity, ensuring it will remain a real estate hotspot for years to come.
Disclaimer: All investment strategies and investments involve risk of loss. Nothing contained in this article should be construed as investment advice.
Sources: U.S. Bureau of Labor Statistics, U.S. Census Bureau, U.S. Department of Housing and Urban Development, Orlando Regional Realtor Association, Stellar MLS, Freddie Mac.
