As part of an initiative to create more affordable housing and an increased inventory of homes, President Joe Biden recently announced his administration wants to make single-family homes less available to investors.
According to a recent study, that might reverse a trend that the Orlando area has seen as of late.
In a study conducted by the real estate company Redfin, residential properties bought by real estate investors increased by 170.8% in the Orlando region during the second quarter.
The study said that 2,313 homes were bought in the Orlando area by investors, which represented 18.6% of the number of homes sold in the region during the quarter.
The total value of homes bought by investors was $734,056,872.
Nationally, one out of every six homes purchased in the second quarter was acquired by investors, according to the study.
The motives for investors can be wide-ranging, whether they are just snowbirds wanting a place in a warmer climate to vacation during the winter months, investors who want to rent a place out for vacations during the heavy tourist season, or people who want to be full-time landlords.
Regardless, all are motives that can decrease available housing in a market where there already is a low inventory, which is why it was a point of emphasis in the steps to increase affordable housing supply laid out by Biden’s administration.
In a release, the Biden administration said it wants to create exclusivity periods where only governmental entities, owner occupants and qualified nonprofit organizations are able to bid on certain properties.
The goal of the administration is to create, preserve and sell 100,000 additional affordable homes to homeowners and nonprofit organizations over the next three years, with an emphasis on lower and middle segments of the market.
Back in March, Florida Gov. Ron DeSantis also signed into law a bill that poured more than $200 million into affordable housing programs.
Combined with federal funds, Florida this year is expected to get near $1.5 billion in funds toward affordable housing, according to state Rep. Jayer Williamson, chairman of the Infrastructure & Tourism Appropriations Subcommittee.
To learn more about these issues and many more related problems (and solutions!), tune in for our latest episode of “Solutionaries,” a solutions-based journalism program we launched earlier this year.
Here’s a trailer:
The full episode will be released at 8 p.m. on Sept. 20.
At News 6, we’re committed to highlighting those in our community who are at the forefront of tough conversations, big decisions; working to fight for advancements in our society with the goal of making the world a better, more equitable place. That’s why we launched “Solutionaries,” the digital newscast designed for you to watch any time you want. You can find the show at:
- On your Amazon Fire Stick, Roku, or Apple TV. (Search for “WKMG” in your App Store).
For another taste of what you can expect from episode two, here’s a bonus clip:
Watch episode one: Policing in America