‘22 real estate trends: Osceola on the uptick for luxury second homes, competitive rentals

Pacaso, a real estate platform specializing in second-home transactions, has Osceola County rated as the No. 2 market with the biggest year-over-year increase in share of luxury second-home rate locks for 2022.

To determine the top U.S. markets, Pacaso analyzed second home mortgage rate lock data, an indicator of second home buying activity. The report revealed the top ten counties across the U.S. that saw the biggest annual increases in the share of second home mortgage rate locks for homes priced above $1 million designated for seasonal or recreational use.

Osceola County saw a 6.1% increase. Through its analysis of Optimal Blue mortgage rate lock data from Jan. 1 through Dec. 6, the average luxury home sold for over $1.3 million. Upscale developments like Reunion helped pace Osceola’s meteoric rise on this list. Only Washington County, Utah topped Osceola. Indian River, just south of Brevard County, was fourth on a list that included Napa Valley, Calif. (fifth), Kauai, Hawaii (sixth), Cape May at the southern tip of New Jersey (seventh) and New York City (ninth).

“In previous years, lesser known ‘destinationadjacent’ locations saw the biggest shifts, but this year there’s a mix of established markets and up-and-coming destinations,” Pacaso CEO and Co-founder Austin Allison said. “More modest price growth, and perhaps even price drops in some markets, could be contributing to some buyers turning again to these established locations to find the second home of their dreams.

The study can be found at www.pacaso.com/blog/top-second-homemarkets-2022.

For those in the rental market, the Orlando market, of which Osceola County is included, was the third-most competitive in the country, behind Miami and Grand Rapids, Mich., according to rental research firm RentCafe.

Among the factors going into the area’s Rent Competitiveness Index (RPI) of 109.3, renters had very few options to choose from. Even though the apartment supply grew by 2.2% during 2022, 72.5% of apartment dwellers chose to stay put in 2022, so 96.8% apartments for rent were occupied. With 21 prospective renters competing for an apartment, the average vacant rental in Orlando was filled in 28 days.

RentCafe studied apartment data for 135 markets based on occupancy rates, the number of renters applying for an available unit, vacancy days, the percentage of renewed leases, and the share of new apartments. For the full report, go to: market-snapshots/most-competitive-rentalmarkets-this-year.