Orlando’s History and Real Estate Trends

Orlando as a modern city is a far cry from its humble, mysterious origins. Today it is known as a thriving metropolis, a large city with a volatile real estate market and a diverse economic base. Tourism, hospitality services, the entertainment industry, and national defense industrial plants drive its economy.

But the Orlando of old was a rural area, whose inhabitants operated sugar mills and citrus groves. It also played a major role in the Seminole Wars, which influenced its early culture and population.

Historians point to Orlando Reeves. Reeves died during the second Seminole War. He owned a sugar mill. When settlers discovered his name carved into a tree, they assumed it was his grave marking. Settlers took to calling the area Orlando, and the name stuck.

After the Civil War, Orlando experienced tremendous population growth. Citrus groves and sugar mills prospered, cattle ranching was a prominent occupation. The area settled as a registered town and became the county seat of Orange County in 1856. It was settled as a city in 1885.

As years passed the population steadily grew. Orlando's identity and industrial strength took shape. In the 1920's, during the Florida Land Boom, Orlando experienced a dramatic increase in housing development. The price for land and homes skyrocketed. The design and layout of modern Orlando and its surrounding areas is largely derived from this constructive period.

But when a series of devastating hurricanes and then the Great Depression hit, the Florida Land Boom ended.

Following the Second World War, though, as the nation's wealth grew, Orlando reemerged as a popular, tropical destination. Many GI's visited and eventually settled there. The bolstered economy allowed the city to invest in urban development and various public projects. Then, in 1965, the plans to build Walt Disney World were announced. Since Disney World's completion, Orlando has been a major tourist destination, an important American city with exciting cultural offerings.

All of these factors contributed to Orlando's current state. The city's population continued to increase--driven by tourism and steady manufacturing resources. In turn, its real estate market flourished. The real estate market's upturn lasted until the early 21st century. But in 2005, signs of trouble appeared on the horizon.

Fueled by the demand for more high-end real estate, Orlando's landscape grew crowded with expensive properties. For a time, these homes sold, and many investors and realtors remained confident in the market's stability. Soon, though, the national economy experienced a swift downturn; people living in expensive homes could no longer pay their mortgages, and many properties fell into foreclosure. As the national economy dimmed in 2008, Orlando, and Florida at large, endured a taxing real estate downturn.

Opportunity rises from adversity. Three years of economic hardship, emboldened by the real estate market's pitfalls, now present investors and realtors with fresh opportunities.

Property prices continue to fall. But soon they will stabilize. Many experts suggest that now is the time for investment. This benefits the individual as well as the economy. The individual invests in property. The housing market notices. The property increases in value over time. The individual, who buys now, later sits on a valuable asset. Again, the market notices. This process, if repeated successfully, will bolster the market at large.

Of course all parties must be judicious. Realtors, investors, and banks must learn from their mistakes. If caution and judgment work together with honest capitalism, the Orlando real estate market will once again reemerge as a national powerhouse.