Kevin Johnson, Broker/Owner of OneBlue Real Estate, recently completed a comprehensive analysis of the rental market in the Orlando MSA for the month of May. What we found will come as no surprise to the thousands of Floridian’s who are renting right now. Renting an Orlando area home is EXPENSIVE! The question then comes, just how expensive is it to rent a home versus buying an Orlando area home? We dug into the numbers from May 2015 and we found some pretty eye opening statistics. Today, we are breaking them down for you, county-by-county.
We logged into the MLS and pulled all the closed deals for May 2015. For the purposes of this analysis, we only looked at a typical 3-bedroom, 2-bathroom home with a private pool (everyone wants a pool, right?). We look at all homes leased for the month of May 2015 to get the average leased price per county. We then did the same search but this time looking at the same types of homes that sold in the month of May and what those homes would cost if you were to purchase them with a 30-year FHA loan at 3.8% interest. Here is what we found:
Orange County, Florida:
In May 2015, the average leased amount was $1,393. That same home sold for, on average, $242,744. If you were to get a standard FHA home loan at 3.8% your monthly payment would be $1,091.00 (principal and interest), which is $302 less per month than renting. That may not seem like a lot but when you multiply that over the course of a year, that nearly $4,000 extra per year you are paying to rent someone else’s home!
Seminole County, Florida:
Our friends in Seminole county have it a bit easier than our Orange County friends. While it is more expensive to live in Seminole County, the delta between renting and owning is about 25% better than Orange. The average leased home went for $1,429 in the month of May 2015. The average home sold for $260,903 or $1,173 with an FHA loan at 3.8% making renting $256 more per month for the same home. Over the course of a year, our friends in Seminole County pay just over $3,000 extra per year for the privilege of renting versus owning their own home.
Osceola County, Florida:
Bad news for our friends in Osceola County, you are in the most expensive county in Central Florida to rent. Sorry. While the per month out of pocket is lower than your friends in Orange and Seminole, the delta between renting and owning is the worst of the three counties we analyzed. In Osceola County, the average leased home went for $1,250 per month. That same home, on average, sold for $189,858 or just $853 per month with a standard FHA loan at 3.8%. That makes renting the same home $397 per month MORE expensive than owning it for a grand total of $4,764 over the course of a year!
If you are a renter, you’re probably freaking out about right now but don’t. Your friends at OneBlue Real Estate are here to help you. We have dedicated buyer’s agents who will help evaluate your situation, partner you with one of our preferred lenders and get you on the path to homeownership.
Data source: MyFlorida MLS