The state of Florida faces a serious housing problem intensified by the significant imbalance between supply and demand in the real estate market. Property prices exploded and many residents were priced-out. If, in one hand, the heated real estate market stimulates the economy, on the other hand, it has a negative impact on companies, whose employees are moving further and further away in search of affordable housing in suburban regions. In this context, the Disney Group decided to contribute by announcing an affordable housing project with more than 1300 residences in an area of 80 acres. Read on to learn more about this project that will come at a great time and will greatly help the central Florida real estate market.
Walt Disney World Resort’s New Affordable Housing Project
The Disney Group will allocate 80 acres of its land to a new housing project in central Florida. There are more than 325,000 square meters in southwest Orange County, the same county where the city of Orlando and Disney parks are located. The idea is to contribute to the community and make a difference locally, facing what is now one of the biggest challenges in the state of Florida: affordable housing.
The project is still in the early stages and still needs approval. There will be 1,300 units located close to schools and the new Flamingo Crossings Town Center, a complex with shops, supermarkets and several restaurants.
The news comes in line with the Disney Group’s latest announcement, which revealed intentions to create planned residential neighborhoods across the United States. The group will leverage its expertise in planning and urbanism, evidenced in its world-class theme parks and resorts.
“We are invested in working together with our community to solve complex issues,” said Jeff Vahle, president of Walt Disney World Resort. “The lack of affordable housing is affecting many people across our country, including right here in Central Florida. With this initiative, we’re lending a hand to make a real and meaningful impact in our community by tapping into the best of our company’s strengths. This is the right opportunity and the right time to take action.”
Unbalanced real estate sector
While hundreds of new residents arrive daily in Florida looking for homes, the market does not have enough inventory to meet the significant demand. The result was evident in the rise in prices in 2021, whose trend continues in 2022.
The inaccessibility of housing meant that many Florida residents were “priced-out”, that is, excluded from the market. Ordinary middle-class citizens in need of housing find themselves in delicate conditions to purchase a home. Those who already own a house tend to sell and take advantage of the high prices, moving, in a second moment, to the suburbs.
The situation has become so critical that a single single-family house (single-family residential house) can receive up to 6 different offers, in a real auction that the market calls “Bidding-War”.
The Disney Group’s business, in this context, is being affected, as the parks need employees (cast members) living close to the parks.
High appreciation potential (Opportunity for investors)
The imbalance in Florida real estate brings opportunities for investors. With low inventory and high demand, home prices in central Florida are likely to rise even further. And everything indicates that this situation will not be reversed in the short term. According to official Florida government estimates, the state is expected to welcome 849 new residents daily by 2026.
At the same time, inventory is expected to remain low as no new properties are entering the market anytime soon. Construction companies race against time to build new projects, however, between approval, construction and delivery, the cycle can take more than 6 years. Added to this fact is the lack of manpower and material, which has worsened in the last two years.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida. If you want to know more about real estate investment opportunities in Florida, contact me right now and chat with me on WhatsApp: +1 (305) 318 6968 (Heloisa Arazi).