Orlando’s Housing Market Transitions Into a New Phase of Opportunity

Written by:

Rudi Davis

Date:

09 Nov 2025

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What lies ahead for Central Florida’s housing market? Freddie Crespo, a realtor and broker with Investor’s Real Estate LLC, believes the region is nearing a pivotal transition that could alter the market by 2027 or 2028. In a recent interview, Crespo shared his perspective on emerging trends and what buyers and sellers should expect in the coming years.

Current Market Assessment

“This moment right now is very interesting, because this moment should be where the builders over build,” said Crespo, who brings nearly three decades of experience across multiple market cycles. “Builders always over build, and in 2007 they overbuilt. And we had in the United States, we had over 4 million homes on the market right before it crashed. Today, we have one point million homes on the market.”

Orlando’s housing market has recently seen notable inventory constraints compared to previous cycles, with approximately 15,000 homes currently listed, well below the 25,000-plus homes available before the 2007 downturn. This limited supply persists even as Florida’s population has grown by about 2 million residents since the last market peak.

Key Market Drivers

Crespo pointed to several key influences on Orlando’s housing market. The most significant is a delayed construction cycle that was disrupted by the COVID-19 pandemic. “The builders started late. Around 2016 they really started building, and it takes them about 10 years to overbuild. But then we had covid, and covid stopped them in their tracks,” he said.

Supply chain disruptions and regulatory hurdles added to the delays. “We had all of that supply chain issue, all of those problems, and so it just delayed the catching up to population growth,” Crespo commented.

The usual 17-18 year real estate cycle has been interrupted, with the pandemic creating an unusual break from normal market rhythms.

Areas of Opportunity

Crespo sees first-time buyers as the most active group in the current market. “Your typical buyers are your first time buyers, people like me in 1996 when I went to buy, I had no clue. I didn’t care what the market was doing. I just needed and wanted to buy a home, and I did it,” he said.

These buyers are mainly driven by changes in their personal lives, such as marriage or starting a family, rather than by trying to time the market. This group forms the foundation of current housing demand, even in the face of affordability pressures.

Challenges and Concerns

The interview also highlighted challenges in the Orlando market, particularly regarding affordability and limited inventory. “It’s just very expensive to purchase, and you need a big down payment just to keep a normal what a normal payment would be, and with principal, interest, tax and insurance,” Crespo said.

Recent buyers are especially at risk. Those who purchased homes between 2022 and 2025 could find themselves underwater if they need to sell soon, as closing costs of about 6% combined with minimal price growth may result in negative equity.

Strategic Recommendations

Crespo advised buyers to think long-term rather than trying to predict short-term market movements. “I don’t think it’s wise to time the market either in your life, like if you need a place to live and you can afford it, then I say, go ahead and buy it,” he said.

He also recommended that buyers consider building a portfolio by owning at least two properties, providing flexibility for future moves and the ability to benefit from market cycles.

Looking Forward

Looking ahead, Crespo projected, “I’m looking maybe 2027 2028 where we probably peak out.” He expects inventory in the Orlando area will need to reach 25,000 to 30,000 homes before a significant correction occurs.

His outlook suggests the current cycle has been postponed, not avoided, with builders still moving toward the overbuilding phase that typically leads to a downturn. This extended timeline presents both opportunities and risks for today’s market participants.