U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

Spotlight on the Housing Market in the Orlando-Kissimmee-Sanford, FL MSA | Page 1

Spotlight on the Housing Market 

in the Orlando-Kissimmee-Sanford, 

FL MSA

The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | January 2015

The Orlando-Kissimmee-Sanford, FL Metropolitan Statistical Area (Orlando MSA) is located in central Florida and includes four counties: Lake, 

Orange, Osceola, and Seminole. The foreclosure crisis in Orlando, as in Florida generally, hit harder than in most parts of the country, but the 

recovery from the crisis and subsequent recession has been faster than for the nation overall. Home prices appreciated nearly 50 percent more 

than the national rate during the housing bubble, and the ensuing decline in prices was also steeper—55 percent compared with a national 

decline of 32 percent. The lower property values and the resulting underwater mortgages were fueled by investor speculation and excess 

housing construction going into the crisis, as well as unsustainable mortgage lending. The rise in unemployment during the recession added 

further to rising defaults and the decline in property values. The share of mortgages at risk of foreclosure (those 90 or more days delinquent or 

in the foreclosure process) peaked at the beginning of 2010, the same as nationally, but at a much higher rate. Orlando currently ranks 34th 

among metropolitan areas for share of mortgages at risk of foreclosure. Florida, which requires a judicial process for foreclosure, places third 

highest in the nation for the time it takes to complete a foreclosure, which contributes to the high rate of mortgages in the foreclosure pipeline. 

The share of distressed mortgages has declined considerably in Orlando–the result of four years of above average job growth, fairly stable 

gains in home prices, local legislation that curtailed some foreclosure actions, and the local use of the Administration’s mortgage assistance 

programs. The need for recovery efforts continues, however, as Orlando ranks high among metropolitan areas for the proportion of mortgages 

that remain underwater or near underwater. The Administration’s broad approach to stabilizing the housing market has been a real help to 

homeowners in Orlando and the surrounding area. This addendum to the Obama Administration’s Housing Scorecard provides a summary of 

local economic trends and conditions and the impact of the Administration’s efforts to stabilize the housing market and help local homeowners.

Population Growth, Employment, 

and Housing Market:

With more than 2.1 million people according to the most 

recent Census, the Orlando MSA is the 26th largest in 

the nation. From 2000 to 2010, Orlando’s population 

increased fairly rapidly—by an average of 49,000 people, 

or 3.0 percent, a year. Natural population growth (births 

minus deaths) accounted for only 27 percent of population 

growth during this period, with people moving into the 

area accounting for the remaining 73 percent. An average 

Orlando MSA Housing Unit Growth Outpaced Population and 

Household Growth During the Past Decade

Date of Census 4/1/2000 4/1/2010

Orlando MSA Population 1,644,561 2,134,411 

 Annual Growth Rate — 3.0%

Orlando MSA Households 625,248 798,445 

 Annual Growth Rate — 2.8%

Orlando MSA Housing Units 683,551 942,312 

 Annual Growth Rate — 3.8%

Source: Census Bureau (2000 and 2010 Decennial)

of nearly 35,900 people per year moved to the Orlando MSA during the last 

decade, with the highest influx—an average of 48,500 people—occurring 

between the years 2001 and 2006. 

During the decade spanned by the Census, new housing 

production exceeded household growth in Orlando. Net annual 

housing unit growth of 3.8 percent in the Orlando metropolitan area during 

the last decade was much greater than the corresponding population and 

household growth rates of 3.0 and 2.8 percent, respectively. According to the 

Census Bureau, the rate of increase in vacant units in the Orlando metro area 

during the 2000s was more than three times higher than the national rate, with 

vacant units increasing at an average annual rate of 14.7 percent, compared 

with 4.4 percent nationally. Investor speculation stimulated overbuilding in the 

years leading up to the housing crisis, with the increase in the share of investor 

purchases well above the national upturn. Specifically, from 2000 to 2005 

investor home sales rose from 11.7 to 28.4 percent of total sales in the Orlando 

metro area, while the corresponding increase for the nation was from 8.2 to 

14.8 percent. Subprime lending also contributed to overbuilding. A study by the 

National Bureau of Economic Research indicates that the Orlando MSA ranked 

15th out of the top 107 metros with the highest share of subprime originations 

during 2005, with subprime originations as a share of new mortgages at 25 

percent in Orlando. A conservative estimate based on HMDA (Home Mortgage 
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Disclosure Act) data indicates that high-cost (proxy for 

subprime) originations tripled nationally between 1998 

and 2005, while a study by the Center for Responsible 

Lending estimates that approximately 90 percent of subprime 

mortgages during that period faced increases in monthly 

payments of 30 to 50 percent within a few years, causing 

borrowers with subprime loans to typically default at more 

than 7 times the rate of other mortgages.

Orlando’s economy is improving. The local economy 

was growing rapidly before it began to decline in 2008. 

From the second quarter of 2003 through the first quarter 

of 2008, jobs increased at an average annual rate of 3.9 

percent, compared with a national increase of 1.2 percent 

during the same period. As a result of the build-up in housing 

during the bubble, the impact of the foreclosure crisis and 

the Great Recession were more severe for the Orlando 

metropolitan area than for the nation. Jobs in the MSA 

declined at an annual rate of 4.7 percent, from the second 

quarter of 2008 through the first quarter of 2010, compared 

with a national decline of 3.1 percent. The recovery from 

the recession has been stronger for Orlando than for the 

nation, however, with jobs increasing at an annual rate of 

2.8 percent from the second quarter of 2010 through the 

third quarter of 2014, compared with a 1.6-percent increase 

nationally.

The Orlando MSA is home to several large hospitals and 

institutions of higher learning. During the recent recession, 

a period when every other private sector in the MSA lost 

jobs, the education and health services sector expanded 

at an average annual rate of 1.8 percent. Job losses were 

most severe during this period in the construction sector, 

where jobs declined at an annual rate of 19.3 percent and 

accounted for nearly 30 percent of the loss in employment 

in the MSA. Job losses were also fairly substantial for the 

wholesale trade sector (-9.4 percent), other services (-7.7 

percent) and manufacturing (-7.3 percent). The recovery 

from the recession has been led by the leisure and hospitality 

sector (4.9 percent), construction (4.2 percent), and retail 

trade (4.0 percent), with jobs in education and health 

services increasing at an average rate of 2.2 percent 

during this period. Growth in these sectors was offset by 

average annual job losses of 1.2 percent in other services 

and 0.6 percent in the state and local government. The 

unemployment rate for the Orlando MSA peaked at 11.5 

percent in December 2009 and has since fallen to 5.4 

percent as of December 2014. The national unemployment 

rate peaked in October 2009 at 10.0 percent, falling to 5.6 

percent by December 2014.

Home sales in Orlando have improved, but slowed slightly in 

2014. After peaking at 79,900 units sold in 2005, purchases of previouslyowned (existing) homes in the Orlando MSA declined between 2006 and 2008 

by an average annual rate of 23 percent. Existing home sales rose again from 

2009 to 2013, increasing at an annual rate of 9.6 percent (although on a much 

lower base). Sales so far in 2014 have declined slightly (-2 percent), however, 

to an annual pace of 44,300. Sales of previously-owned homes in Orlando 
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U.S Department of Housing and Urban Development

have followed the national trend. Existing home sales in the 

nation peaked in 2005 and declined by an annual rate of 

14 percent between 2006 and 2008. Existing home sales 

began to rise nationally in 2009, increasing at an average 

annual rate of 4.8 percent from 2009 to 2013, but slowed 

in 2014, declining by 3 percent. As for new home sales in 

the Orlando MSA, purchases peaked in 2006 at 33,050 

units, before falling from 2007 through 2011 at an annual 

rate of 17 percent. New home sales increased at an annual 

rate of 35 percent (albeit on a low base) in 2012 and 

2013, but the pace in 2014 slowed slightly (-4 percent) to 

an annual pace of 7,275 units. Nationally, new home sales 

peaked in 2005 before declining by an annual rate of 13 

percent from 2006 through 2011; sales have increased 

since at an annual rate of 14 percent (also on a low base) 

from 2012 through 2014. 

Home prices in Orlando rose and declined more 

steeply than for the nation. The CoreLogic repeatsales house price index (HPI) shows that home prices in 

the Orlando MSA rose 49 percent faster than for the rest 

of the nation during the housing bubble and fell more 

sharply (-55 percent) from their peak in October 2006 to 

their low in March 2011. The national peak-to-low decline 

was 32 percent (from April 2006 to March 2011). Investor 

speculation had a significant impact on the rise in home 

prices in the Orlando MSA, with sales to investors averaging 

24 percent in Orlando during the bubble–much higher 

than the 14 percent share nationally. As described earlier, 

subprime lending was also a factor in fueling home prices 

in the Orlando MSA. Since reaching their low point, home 

prices in the Orlando metropolitan area have bounced 

back more quickly—rising 41 percent compared with a 29 

percent low-to-current increase for the nation. Home values 

in the Orlando MSA are currently on par with prices in late2004.

The apartment vacancy rate in Orlando has 

tracked closely with the national rate during the 

past 2 years. According to MPF Research, the Orlando 

MSA apartment vacancy rate was 3.9 percent in the third 

quarter of 2014, down from 4.5 percent a year earlier, 

representing fairly tight market conditions. The decrease in 

the vacancy rate occurred despite increased construction 

because demand for rental housing was extremely high 

during the prior year. The national apartment vacancy rate 

was 4.4 percent during the third quarter of 2014, down 

slightly from 4.6 percent a year earlier. During the third 

quarter of 2014, the average apartment rent in the Orlando 

MSA increased 3.5 percent from a year earlier to $949, 

compared with a nationwide increase of 3.9 percent to 

$1,166. Overall rental market conditions in the Orlando metro area remain 

weaker than the apartment market due to a high number of vacant single-family 

rental properties. According to the CPS/HVS (Current Population Survey/

Housing Vacancy Survey) conducted by the Census Bureau, as of the third 

quarter of 2014 the overall rental vacancy rate for the Orlando MSA was 12.8 

percent compared to a national rate of 7.4 percent. The 2013 ACS (American 

Community Survey) indicates that single-family homes accounted for 37 percent 

of all rental units in the Orlando MSA, while representing 35 percent of all 

rental units in the nation. 

Trends in Mortgage Delinquencies and 

Foreclosures: 

The share of distressed mortgages in Orlando has fallen sharply 

but still exceeds the national level. As of December 2014, the Orlando 

MSA placed 34th out of 381 metropolitan areas ranked by share of mortgages 

at risk of foreclosure (90 or more days delinquent or in the foreclosure process) 

according to Black Knight Financial Services, Inc. From 2000 through 2004, 

the share of mortgages at risk of foreclosure in the Orlando MSA was very 

similar to the national trend, and from 2005 through early 2007, the share 

of distressed mortgages in Orlando actually dipped below the national rate, 

according to CoreLogic data. In 2007 and 2008, when the foreclosure crisis 
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U.S Department of Housing and Urban Development

began and single-family foreclosures were largely driven by 

unaffordable non-traditional loan products, the increase in 

mortgages at risk of foreclosure in the Orlando MSA rose 

at a much faster pace than nationally. Specifically, from 

the beginning of 2007 to the end of 2008, the share of 

distressed mortgages in Orlando increased from 1.2 to 11.2 

percent, compared with a national increase from 1.6 to 4.5 

percent. Beginning in 2009, foreclosures were increasingly 

driven by loss of income, unemployment, and strategic 

defaults as the economy worsened, according to research by 

the Federal Reserve Bank of Chicago. A sharp spike upward 

in the share of distressed mortgages occurred in 2009 for 

both the Orlando MSA and the nation. By early 2010, 

mortgages at risk of foreclosure reached 19.6 percent in 

Orlando and 8.0 percent nationally. The share of distressed 

mortgages has since fallen to 6.8 percent for Orlando and 

3.7 percent for the nation. Mortgages at risk of foreclosure 

are declining fairly rapidly in Orlando. Over the last year, 

distressed mortgages decreased by 43 percent—from 

27,300 to 15,600—compared with a national decline of 

27 percent over the same period. A partial explanation for 

the higher share of distressed mortgages in Orlando relative 

to the nation is the time it takes to process a foreclosure in 

Florida. As of the fourth quarter of 2014, the average time 

to complete a foreclosure in the State of Florida was 946 

days, much longer than the national average of 604 days.

RealtyTrac data show the rate of foreclosure 

completions in Orlando since April 2009 has been 

more than double the national rate. From April 2009 

through August 2014, the number of foreclosure completions 

as a percentage of all housing units was 6.1 percent in 

Orlando, more than double the 3-percent rate for the nation. 

Foreclosure completions have been trending downward 

nationally and in the Orlando MSA since the third quarter 

of 2010. As of the second quarter of 2014, the Orlando 

metropolitan area had a foreclosure completion rate of 0.24 

percent, much lower than the peak rate (0.56 percent) in 

the third quarter of 2010, but still higher than the national 

average of 0.06 percent. Second quarter foreclosure 

completions in Orlando are also 15 percent above their rate 

a year earlier. With rising home prices and low inventories 

of homes for sale, lenders are resolving defaults more 

Foreclosure Completion Rates in the Orlando MSA

Area

Second Quarter 2014 Since April 1, 2009

Foreclosure 

Completions

Foreclosure 

Rate

Foreclosure

Completions

Foreclosure 

Rate

Orlando MSA 2,230 0.24% 57,660 6.1%

Nation 85,300 0.06% 3,921,900 3.0%

Note: Foreclosure rates as percent of all housing units; 

 data through August 2014 for foreclosures since April 2009

Source: Realty Trac and Census Bureau

quickly, particularly in states with substantial inventories of distressed mortgages 

such as Florida, which has led to an increase in foreclosure filings. In addition, 

due to the large backlog of cases in the Florida foreclosure pipeline, the Florida 

Supreme Court ruled last May to allow lawyers to sit on foreclosure cases in 

place of judges to expedite their resolution.

The efforts of numerous state and local entities and financial 

institutions in partnership with the federal government have 

helped contain the rate of foreclosures. In June 2013, Florida passed 

a law known as the Florida Fair Foreclosure Act (House Bill 87), which placed 

greater requirements on banks to prove they own the loan before initiating 

a foreclosure. The bill also shortened the time period that banks may seek a 

deficiency judgment, whereby a lender can recover the difference between the 

foreclosure sale price of the home and the total debt owed from the borrower, 

from five years to one. The need for recovery efforts continues. According to 

CoreLogic, as of the third quarter of 2014 26.3 percent of mortgages in the 

Orlando MSA remain underwater, although this is down from 32.3 percent a 

year earlier. This compares to a 10.3 percent share of underwater borrowers 

(those who owe more on their mortgage than the value of their home) at the 

national level.

The Administration’s Efforts To Stabilize the 

Orlando MSA Housing Market:

The Administration’s mortgage and neighborhood assistance programs—the 

Home Affordable Modification Program (HAMP, which is part of the broader 

Making Home Affordable program), the Federal Housing Administration (FHA) 

mortgage assistance programs, the Neighborhood Stabilization Program (NSP), 

and the Hardest Hit Fund (HHF) program—combined with assistance from 

the HOPE Now Alliance of mortgage servicers and the National Mortgage 

Servicing Settlement have helped stabilize the Orlando MSA housing market.

From the launch of the Administration’s assistance programs in April 2009 

through the end of September 2014, nearly 84,800 homeowners have received 

mortgage assistance in the Orlando metropolitan area. More than 45,300 

interventions were completed through the HAMP and FHA loss mitigation and 

early delinquency intervention programs. An estimated additional 39,500 
The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | January 2015 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

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U.S Department of Housing and Urban Development

proprietary mortgage modifications have been made 

through HOPE Now Alliance servicers. While some 

homeowners may have received help from more than one 

program, the number of times assistance has been provided 

in the Orlando metropolitan area is nearly one and onehalf times the number of foreclosures completed during this 

period (58,700). 

Under the landmark National Mortgage Servicing 

Settlement signed in February 2012, more than 119,411 

Florida homeowners have benefitted from over $9 billion 

in refinancing, short sales and completed or trial loan 

modifications, including principal reduction on first and 

second lien mortgages provided as of June 30, 2013. 

Nationwide, the settlement has provided more than $50 

billion in consumer relief benefits to more than 631,000 

families. That is in addition to the $2.5 billion in payments 

to participating states and $1.5 billion in direct payments to 

borrowers who were foreclosed upon between 2008 and 

2011.

Given over three rounds, the Neighborhood 

Stabilization Program has invested $7 billion 

nationwide to help localities work with non-profits and 

community development corporations to turn tens of 

thousands of abandoned and foreclosed homes that lower 

property values into homeownership opportunities and the 

affordable rental housing that communities need. 

NSP1 funds were granted to all states and selected local 

governments on a formula basis under Division B, Title III of 

the Housing and Economic Recovery Act (HERA) of 2008; 

NSP2 funds authorized under the American Recovery and 

Reinvestment Act (the Recovery Act) of 2009 provided grants 

to states, local governments, nonprofits and a consortium of 

nonprofit entities on a competitive basis; and NSP3 funds 

authorized under the Dodd–Frank Wall Street Reform and 

Consumer Protection Act of 2010 provided neighborhood 

stabilization grants to all states and select governments on a 

formula basis.

Overall, a total of $59.6 million in NSP funds has been 

awarded to five grantees in the Orlando MSA: the City of 

Orlando, Lake County, Orange County, Osceola 

County and Seminole County. In addition, a total of 

$99.7 million in NSP funding was awarded to the State 

Orlando MSA Housing Units to Date Benefitting 

From NSP by Type of Activity 

 Construction or Rehabilitation 459

 Demolition and Clearance 37

 Homeownership Assistance to Low- and Moderate-Income 154

Total Housing Units 650

Additional Projected Housing Units 186

of Florida, of which $21.1 million has been allocated to Osceola County. 

Approximately 650 households in the MSA have already benefited from NSP, 

and activities funded by the program are expected to provide assistance to an 

additional 186 owner-occupied and renter households. 

As part of the State of Florida’s housing recovery efforts, the Florida 

Hardest-Hit Fund program was launched on April 18, 2011 to help Florida 

homeowners who are at high risk of default or foreclosure. The Florida Hardest 

Hit Fund is funded by $1.06 billion from the Administration’s Hardest Hit 

Fund and administered by the Florida Housing Finance Corporation. 

Assistance is provided through the following programs:

• Unemployment Mortgage Assistance Program—Provides 

monthly payment assistance up to $24,000 on behalf of unemployed or 

underemployed homeowners who are unable to afford their monthly payment 

for as long as 12 months. 

• Mortgage Loan Reinstatement Program—Provides up to $25,000 in 

assistance to reinstate a delinquent mortgage.

• Modification Enabling Pilot Program—Provides up to $50,000 

in funds to facilitate modifications for eligible mortgages purchased in a 

distressed asset sale. Principal reduction may be matched with non-program 

funds to facilitate a mortgage modification.

• Principal Reduction Program—Provides up to $50,000 principal 

reduction assistance for a current homeowner with a loan recast or refinanced 

to reduce a homeowner’s monthly payment.

• Elderly Mortgage Assistance Program—Provides up to $25,000 in 

funds to reinstate delinquent property taxes or liens for eligible homeowners 

who have received the maximum benefit from their reverse mortgages.

As of September 30, 2014, the most recent quarter for which data is available, 

the Florida Hardest-Hit Fund had disbursed approximately $417 million on 

behalf of an estimated 19,761 Florida homeowners. Florida homeowners 

who believe they may be eligible for these programs should visit 

www.flhardesthithelp.org.