Posted by Bruce Borden in Orlando, Home Buying

Orlando has grown far beyond its theme park roots, supported by expanding aerospace operations, a strong medical sector, and a steady stream of new residents. As we head into early 2026, the Central Florida housing market has shifted gears. What was once an urgent, high-pressure environment has settled into something far more measured. For buyers hoping to put down roots in the City Beautiful, today’s conditions offer a level of balance that has been missing for several years.

New market data shows that the logjam of limited supply has finally eased, creating meaningful opportunities for shoppers who have been waiting on the sidelines. Orlando has entered what analysts now consider a balanced market, a clear change from the bidding wars of the early 2020s. Active listings are up roughly 16%, timelines are stretching back to normal, and inventory has climbed to its highest point in more than a decade, according to the Orlando Regional REALTOR® Association. Buyers now have more choices and more room to think, making 2026 an appealing time to explore homeownership.

Here are four major factors shaping the Orlando housing market this year.

1. Rising Inventory Brings Back Buyer Flexibility

Orlando’s supply of homes has rebounded, with the metro area currently posting about 4.4 to 6.8 months of inventory as of January 2026. Data from FRED and local real estate sources shows the market moving closer to equilibrium. From Lake Nona townhomes to single-family neighborhoods in Winter Garden, buyers now have the ability to shop more intentionally. The rush to waive inspections or compromise on key features has largely faded.

2. Home Prices Find a Healthier Pace

Median home values in Orlando are holding steady in the $400,000 to $415,000 range. Reports from Redfin and Norada Real Estate indicate appreciation is settling into a more sustainable pattern, typically between 2% and 4% per year. This consistency gives buyers clearer expectations as they compare neighborhoods and price points.

At the same time, sellers no longer hold all the cards. Homes are now closing at about 4% below asking on average, and nearly 23% of listings have already seen price adjustments. While values remain stable, buyers are finding more opportunities to negotiate based on current conditions rather than peak-market expectations.

3. Buying Starts to Compete with High Rental Costs

Although rents have cooled slightly, leasing a single-family home in Orlando still averages around $2,395 per month. Data from Zumper and The Realty Medics suggests that the gap between renting and owning has narrowed enough that many households are reevaluating their options. Purchasing in 2026 can help lock in housing costs while building equity in one of Florida’s fastest-growing metro areas.

4. Seller Concessions Are Making a Comeback

With properties now averaging 58 to 71 days on market, negotiations feel far more collaborative than they did just a few years ago. The 2026 Orlando Market Update points to a growing number of seller incentives aimed at helping deals move forward. These concessions can significantly reduce out-of-pocket expenses for buyers.

Common incentives currently showing up across Orlando include:

  • Temporary Payment Assistance: Seller funds used to reduce monthly mortgage payments during the early years of the loan.
  • Closing Cost Contributions: Cash credits from sellers, often between $5,000 and $10,000, applied directly to closing expenses.
  • Repair Credits or Improvements: Many sellers are addressing inspection items or offering financial credits to cover needed updates.

In areas like Horizon West and Apopka, these concessions can make a meaningful difference when trying to stay within budget.

Is 2026 a Smart Time to Buy in Orlando?

For buyers focused on long-term stability in a high-growth region, Orlando’s 2026 market presents a compelling mix of expanded inventory and steady pricing. The pace has slowed, allowing time for inspections, negotiations, and thoughtful decision-making. While preparation still matters, today’s conditions offer some of the strongest buyer leverage seen in years.

M/I Homes currently offers new construction opportunities across several desirable Orlando-area communities, featuring modern layouts and energy-efficient designs. If you are ready to move from renting to owning, this could be the right moment to take advantage of a more balanced market.



Author

Home
Bruce Borden

Author

Bruce has been with M/I Homes for over 20 years, has been the National Customer Experience Manager for over 10 years, and has been in the home building industry for over 30 years. Happily married and a proud father, Bruce enjoys outdoor activities and home improvement projects, and has never met someone he didn't like.

Minneapolis Housing Market Update for Homebuyers (2026)

Minneapolis Housing Market Update for Homebuyers (2026)

Orlando

Cincinnati Housing Market Update for Homebuyers (2026)

Cincinnati Housing Market Update for Homebuyers (2026)

Orlando