In the midst of national apprehension about the housing market, Central Florida has emerged as a hotspot for luxury real estate.

The Sunshine State, an entertainment hub boasting a beautiful climate, has long been alluring for affluent homebuyers. While retirees, snowbirds and long-term vacationers have popularized the phenomenon of the New York-to-Florida pipeline, the country’s southernmost state has seen a recent increase in residential migration from the likes of California and other highly desirable places.

Tim Weisheyer, the current Florida Realtors president and broker-owner of both Dream Builders Realty and dbrCommercial Real Estate Services, explains that the trend can be attributed to expanding opportunities and industry development.

“Where job growth and job creation happen tend to be where you see the greatest amount of activity. … Florida is unique in that it’s not just one area of Florida that’s doing well but the entire state. There are other parts of the country where they’re not seeing the type of job growth that Florida has seen,” he says. “The state of Florida has not only created a very friendly environment, but a really friendly business [and] tax environment.”

The central locations of companies representing various industries are moving to new states, lured by a combination of lower property taxes and higher incentives. Central Florida in particular has prioritized innovation in technology, commerce, transportation and energy, paving the way for business growth and development. For residents, lower property taxes and better jobs signify more disposable income to spend on luxury lifestyles.

“Affluent buyers are drawn to Orlando for its lifestyle, tax advantages and relative affordability compared to other luxury markets. We’re seeing strong demand from relocating professionals, retirees and out-of-state investors—many of whom can get more for their money here. The luxury segment now represents over 7% of total sales, and inventory in the $1 million-plus range has more than doubled since 2020. It’s safe to say 2024–2025 has seen one of the most active luxury markets Orlando’s ever had,” says Realtor and Broker Associate Bobby Baldor, P.A., of The Baldor Group, eXp Realty.

Although recent years saw the Orlando real estate market at a peak, 2025 so far has been a year of restabilization as economic, governmental and societal factors actively influence buyer uncertainty.

“I think it’s been a lot slower than normal. New administrations coming into the nation always shake up things a little bit. I think there’s … a lack of consumer confidence right now. So we see a lot of people looking but they’re not pulling the trigger and buying as much, and they tend to take a lot longer to make that decision if they do decide to buy,” says CENTURY 21 Carioti Realtor and Broker Associate David Dorman.

“Last year was my best year ever; this year, it’s been about half that and I’m not doing anything different. It’s just that we have inquiries, but they don’t tend to follow through as much, especially buyers. I think they’re kind of testing the waters out to see what’s going to happen. A lot of people think we’re about to go into a recession … but, what a lot of [them] don’t realize is that it’s all reciprocal. If rates go down, prices will be stronger or go up.”

Ultimately, the market is determined by consumers, and their hesitation can lead to the ebbs and flows in pricing. Affluent consumers have more freedom to take risks and to pursue a deal without as much hesitancy—so there are nuances within the trends.

“The luxury market in Orlando remains strong and resilient, with balanced inventory and steady year-over-year price growth of around 7%. Homes priced over $1 million continue to attract motivated buyers—many of them paying cash or leveraging high down payments—making this segment less sensitive to interest rate fluctuations. That said, the overall Orlando housing market is experiencing a noticeable shift. Compared to the red-hot seller’s market of the pandemic years, we’ve now entered a more neutral environment that’s increasingly tilting toward a buyer’s market,” says Baldor.

Wealthy buyers purchase a home in Florida for a variety of reasons: as a primary residence, as a vacation home or as a rental. While nationwide uncertainty still affects those who rent out properties for a passive income, Weisheyer notes that Central Florida is the No. 1 vacation rental market. His experience points in particular to Kissimmee, though he adds that Lake Nona and Windermere are common locations for second-home purchases.

“Property values aren’t going to come down. Interest rates are not going to come down enough to make a sizable difference in your decision-making process, but what is going to happen is your rent is going to continue to increase, and your equity is not going to accumulate on your balance sheet because you don’t own the property,” Weisheyer says. “The best time to buy is now, and make sure you’re working with a realtor that understands the true reality of the marketplace [and] has the big picture to help advise you … during your entire home ownership journey, so that they can ensure you’re making the best long-term financial decision, whether it be for yourself, your family or your overall financial well-being.”

“I think the thing to remember about real estate is there’s always someone buying and always someone selling, you just have to key into it,” adds Dorman. “Everyone else is just as anxious about the process of selling their home or buying a home, so you’re not alone in your fears. Sometimes you just have to ask—and my favorite phrase is, ‘If you don’t ask, the answer’s always no.’ So you have to be willing to play the game a little bit on both sides, and be aware of how other people are feeling about the market, and just get in line with it and find a way to an amicable meeting of minds.”