Disney is one of the great organizations that chose Florida to migrate part of its divisions. In the last two years, Florida has attracted companies from all corners of the US more significantly. The main reason is that “Sunshine Estate” is perceived in the American corporate world as more “business friendly” and receptive to business. With the huge influx of new employees, partners and collaborators looking for housing in the region, the Florida real estate market, which is already heated and with low inventory, is experiencing a situation of total imbalance and pressure on prices. The Disney Group alone will be responsible for the migration of more than 2000 employees to Central Florida, but specifically the Lake Nona Planned Community.
Business Friendly Environment in Florida
The Disney group’s official announcement was made in July of this year, where it announced that approximately 2000 employees would be transferred from California to Florida. In the advertisement, the Group highlights the “business friendly” environment of the state of Florida. Florida does not charge its taxpayers State Income Tax.
The Disney Group has created its Florida headquarters on a campus in the Lake Nona community, where several other companies are also hosting their divisions.
Low inventory of single-family homes
Central Florida, where the Lake Nona community is located, is experiencing an unprecedented situation of imbalance between supply and demand. In recent years, many residents from other states have migrated to Florida in search of larger homes with spacious outdoor areas. The flight from large metropolitan centers, such as NY, for example, to suburban areas and with less population density in Florida, caused the “Sunshine Estate” to experience an influx of almost 1000 new residents per day.
The size of the number of new residents exerted an impressive pressure on the demand for real estate, especially in the segment of single family homes. With the drop in construction activities, the consequence could not be different. Strong demand with low inventory made prices soar.
“Imagine a group the size of Disney, with 2,000 employees looking for houses in the same region, it’s very difficult to find the ideal house,” explains Marilu Drummond, commercial director of the AMG Realty group, real estate in Florida. “It’s not just the employees. There are also close relatives who will likely accompany them,” she adds.
Californians are attracted by the most attractive prices in Florida
The pressure on prices is not just due to increased demand. Californians can pay more for houses, which are considerably cheaper in Florida compared to the average price in the home states. The same goes for New Yorkers. “The average price in Florida is around US$920,000, while in central Florida it is just under US$350,000,” explains Marilu.
Furthermore, as employees are being relocated within the context of the corporation they work for, it is natural that there are still incentives on the part of employers with housing assistance, among others.
The value is so jarring that many California buyers would rather pay “cash” than finance. It’s a big advantage for the new buyer, who comes out ahead of the property dispute. Currently, in central Florida, the same house is being disputed by up to 5 people.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida and aimed at the Brazilian public. If you want to know more about the Florida real estate market and find out about investment opportunities in the region, get in touch and chat with me right now via WhatsApp: +1 (305) 318 6968 (Heloisa Arazi).