Kissimmee, Florida Housing Market Trends for 2025

Kissimmee Florida Housing Market 2025 | Trends & Real Estate Forecasts

February 26, 2025

Key Points:

• Kissimmee’s Market Appeal: Kissimmee is a major Orlando metro area market with high FHA loan activity, making it attractive for first-time homebuyers.
• Short-Term Rental Hub: West Kissimmee is a prime area for Airbnb and short-term rentals due to its proximity to Disney, unlike other Orlando neighborhoods.
• Market Forecast for 2025: Most of Kissimmee is currently a buyer’s market, with certain affluent areas like Winter Park and Windermere maintaining seller-favored conditions.
• Inventory & Pricing Trends: Some areas, like 34746, have an unusually high number of homes on the market, leading to price softening, while others remain stable.
• Strategic Selling Advice: Sellers in Kissimmee should consider listing sooner rather than later to avoid potential price declines, especially in high-inventory areas.

The Scope of Kissimmee's Housing Market

We’re going to go through one of the largest marketplaces in the Orlando metro area. Kissimmee is made up of several zip codes, many very popular neighborhoods, such as Celebration, Florida, actually is not Celebration. It’s Kissimmee.

It’s actually under Kissimmee jurisdiction, part of Osceola County. And this particular marketplace has had a lot of eyes on it because you have very big channels on YouTube, particularly through Osceola County. And I kind of point to the fact that their concerns aren’t unfounded in that you would want to keep your eye on a marketplace like Kissimmee for the fact that they have a lot of high loan to value loan types being funded here.

FHA Loans and Affordability in Kissimmee

Okay. So for instance, if you look across the Orlando marketplace, where are the majority of FHA loans funded? Where are the highest percentages? Where are those numbers really high? It’s the percentage of the mix of all buyers in a particular area and that’s Osceola County. So you have a lot of buyers here that are really starting off their home buying journey, putting down 3% or 3.5% purchasing their first home.

A lot of people also look to Kissimmee in particular Osceola County because of its affordability. And that doesn’t mean that necessarily when people start searching the marketplace, they go, Oh, I can get a new house for 325 or 340 or 350. Those are true statements of Kissimmee.

And then you come to the area and it may or may not work for you, but it is very affordable. It is very reachable. And again, depending on what your criteria is as a home buyer, it may be just exactly what you want.

Short-Term Rentals and Airbnb Market in Kissimmee

The other thing I’ll point out is you might be watching this because you own in Kissimmee already because Kissimmee has a very large slice on the West side of it, where there’s a lot of Airbnb, a lot of short-term rental. The area is actually very close to Disney world is very available and permissible to allow homes to be rented out on a day-to-day basis or under a week. Things of that nature is not available even in the East side of Kissimmee or through the rest of the Orlando Metro, which is commonly unknown.

People all the time reach out to me and say, Jared, I’m going to go buy a house in Windermere, Dr. Phillips or Horizon West. And I’m going to rent it out. Nope.

You have to go down to a place like West Kissimmee. So this is a constantly evolving conversation. If you think you have been watching Kissimmee and you know what this update is about, I think you’re going to be in for a shocker because even as I was looking through the data, it was surprising to me to see exactly what’s going on in this marketplace.

So if you’re considering buying here soon, you own here right now, this is the update. What you need to know is going on in Kissimmee, going into 2025, and this is the channel that you can depend on to keep you updated on these market changes. So without any more bloviating, let’s jump into the data.

Is Kissimmee Favorable for Buyers or Sellers?

For starters, we’re going to use a home price forecast tool because this is obviously people love to talk about what is the forecast? What will 2025 look like? Is it buyer favored, which is what you see here in blue, or is it seller favored, which is what you see here in red? Okay. So look at the Orlando market. And if I were to pull back and pull the rest of Florida, which I can’t really do at a zip code level, cause that’s what you’re seeing right here.

You can see that the marketplaces across the Orlando Metro are largely in favor of the buyer, except, except the affluent areas, which is mind boggling to me. Look at this. You have winter park, you have college park, you have Windermere, you have golden Oak 32836, which is also the South end of five 35 going towards Disney, which is all these areas on the Butler chain of lakes, Lake Sheen, all those kinds of areas, Tibet.

Kissimmee’s Market Saturation: Inventory Trends

One of my favorite tools to measure saturation is a statistic we’re looking at right here called inventory as a percentage of houses. This is the per capita mix for how much of the homes in a given marketplace are actually on the market for sale. Now we can start over here on the West. You can see, Whoa, Jared’s bright red.

And by the way, starting on the front of this, Jared, what’s a normal number? Okay. So usually in a residential marketplace, 1.8, 1.6, 1.8, 2%, something around there is kind of like a statistical norm that we’ve been seeing for multiple years. Now we’ll say the only caveat to that is an Airbnb market, short-term rental, they run higher.

Home Prices: Year Over Year Analysis

This is year over year home price. So as you scan all of Orlando, anything that is orange or reddish is above zero. Meaning the homes are selling over a year ago.

Anything that is flat clear is near zero, or if it’s bluish, it’s actually negative to a year ago. Meaning prices in those marketplaces are actually down against last year. Now, where is this happening? You could see the central part of Orlando.

Final Thoughts: What’s Next for Kissimmee Real Estate?

If you are in a selling mode, I would tell you, you know, we need to plan this sooner than later. This isn’t a marketplace where you don’t want to wait to sell. If you have something, you know, you’re going to sell.
When I see this kind of data, it’s telling me sooner rather than later. Okay. If you’re in the central Florida area and you’re looking for a great church, I’d love for you to join me at the Grove Bible Chapel.
By the way, when you’re buying or selling a home, the process itself can feel overwhelming. That’s why you need a great real estate expert to turn it around for you.
That’s why you need to make one call. That’s all and put my 23 years of experience in nearly 4,000 homes sold to work for you.

Why Choose Jared Jones?

As a top real estate agent with nearly 4,000 homes sold and over 20 years of experience in the Florida real estate market, I have the expertise needed to help you navigate today’s evolving landscape. Whether you’re looking to buy or sell, my deep understanding of market trends and personalized approach will provide you with the insights and strategies required for success.

Best Realtor in Kissimmee, Florida - Reach Out Today!

If you’re ready to make a move in Florida’s real estate market, don’t hesitate to reach out. Contact Jared Jones at 407-706-5000 (call or text) or email info@jaredjones.com for professional guidance and personalized service that will help you achieve your real estate goals.