Home Affordability Gap Widens in Orlando as Required Income Surges 54% in Two Years

Written by:

Rudi Davis

Date:

12 Sep 2025

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The Orlando housing market has hit a mathematical wall that no amount of optimism can overcome, according to local real estate veteran Brenden Rendo who points to a stark disconnect between income growth and home prices that’s freezing many buyers out of the market.

The Numbers Don’t Add Up

“Average family income in Oviedo is $78,000, well, to afford the average house there, you got to make $120,000,” says Rendo, broker associate at The Homes in Orlando Team, referring to one of Orlando’s higher-end suburbs. This fundamental mismatch between incomes and home prices explains why the market has slowed dramatically.

“You can’t do a 50% increase in value and have a 5% increase in income, it doesn’t make sense,” Rendo argues, pointing to transaction volumes that have plummeted to around 400 sales per week in a metropolitan area of over a million people.

The First-Time Buyer Squeeze

The situation is particularly dire for first-time homebuyers, who now represent less than 24% of purchases, according to Rendo. He breaks down the harsh financial reality: “A $400,000 house, 5% down, you gotta have $20,000 down payment, plus your closing costs can be another 10. So you gotta have $30,000 in the bank.”

This capital requirement is pushing many potential buyers to rely on family support. “They’re all borrowing money from their families, Mom and Dad are having to come up with the $20,000,” Rendo notes.

Builder Competition Intensifies Pressure

The resale market faces additional pressure from desperate builders trying to move inventory. “Builders are going to beat you nine times out of 10 because they’re buying down the interest rates to like 4.99%, 3.99%,” Rendo explains. “They’re paying all the closing costs now. They’re giving 20, 25, 30, $40,000 in incentives.”

Market Reset Required

Rendo argues the market needs a fundamental reset to align with economic realities. “It’s not nothing emotional about it, it’s math. The math doesn’t work anymore,” he states bluntly.

His firm is advising clients to adjust expectations accordingly, noting that what was once considered a basic milestone of middle-class life has become increasingly out of reach. “A house isn’t just some everyday thing for a lot of people, it’s a luxury. It’s an actual luxury to buy a house now,” Rendo observes.