For the first time in years, renters in Orlando’s luxury market are finding that their monthly rent matches the mortgage payment on a home in Claremont, a suburb 20 miles west of downtown. As a result, many are choosing to buy rather than continue renting.
Matt Mobley, broker and owner of Hancock Realty Group in Claremont, began noticing this trend about 18 months ago. He observed that buyers touring homes in Claremont were not relocating from nearby neighborhoods or from out of state. Instead, they were coming from downtown Orlando’s high-rises and luxury apartment complexes, opting to pay a mortgage instead of rent – at nearly the exact monthly cost.
“We have immigration happening from the Orlando market into Claremont,” Mobley says. “People are trading rent for ownership, and it’s the same number for them.”
This migration is fueling Claremont’s new construction market even as resale inventory lingers. Builders are selling homes as quickly as they can finish them, and buyers are simply redirecting their rent payments into home equity rather than increasing their monthly housing costs.
Why the Numbers Now Make Sense
Until recently, the difference between renting and owning in the Orlando area was significant. Mortgage payments were higher than rent, especially when factoring in property taxes, insurance, and HOA fees. For many, buying meant accepting a higher monthly expense for ownership.
That dynamic has changed. Mortgage rates have climbed from the low 3 percent range during the pandemic to the mid-6 to low-7 percent range today, raising monthly payments. However, home prices in Claremont have not increased as quickly as in Orlando’s urban core, where luxury rental rates have continued to rise.
The result is that a renter paying $2,800 a month for a two-bedroom apartment in downtown Orlando can now buy a three-bedroom home in Claremont with a monthly mortgage payment – including taxes and insurance – of $2,500 to $2,800.
“The cost to rent in the Orlando luxury market is identical to the cost of owning in my zip code,” Mobley says.
Renters who were previously priced out of homeownership in Orlando can now buy in Claremont without compromising on space or amenities. Many are getting larger homes, yards, and the benefit of building equity, all for the same monthly outlay.
What Claremont Offers
Claremont stands out for its unique geography and lifestyle. Located at the highest elevation point in Florida, the area features rolling hills and more than 1,000 lakes, offering a landscape that feels more like North Carolina than Central Florida. The city is known as the “Choice of Champions” and attracts Olympic athletes for training. A paved trail runs through the center of town for 20 miles, used daily by runners, cyclists, and walkers, providing scenic views without the need to cross busy roads.
For renters leaving Orlando’s dense urban core, Claremont offers more space, better scenery, and a quieter pace of life – all without the higher price tag of homes closer to downtown.
New Construction Leading the Way
While resale homes in Claremont are taking longer to sell, new construction is moving quickly. Builders are pricing homes in the $450,000 to $550,000 range and offering financing incentives, such as lower introductory mortgage rates, that bring monthly payments down to rent-equivalent levels.
Mobley recently observed a buyer touring a Lennar home where the builder offered a five-year adjustable-rate mortgage at 3.75 percent. Although the home’s list price was relatively high, the monthly payment was low enough to match the buyer’s current rent.
“They were pushing that ARM like a used car salesman,” Mobley says. “But it worked – the payment matched what they were already paying in rent.”
This financing advantage allows builders to compete aggressively with resale sellers, who typically cannot offer similar payment incentives. For renters moving from Orlando, new construction often provides the most straightforward path to homeownership because the payment structure is immediately familiar.
Advice for Renters Considering the Move
If you are renting in Orlando and your monthly payment is $2,500 or more, it may be worth comparing the cost of buying in Claremont. Many buyers are finding that their mortgage payment, including taxes, insurance, and HOA fees, is on par with their current rent.
New construction offers the most attractive financing options, as builders are providing low-rate mortgages to close deals. However, many of these are adjustable-rate mortgages that reset after five years. Buyers should review the terms carefully and ensure they can afford the payment after the introductory rate ends, or plan to refinance before the rate adjusts.
Resale homes offer more room for negotiation. Inventory is sitting longer, so sellers are more likely to offer closing cost assistance, repair credits, or price reductions after a few weeks without offers.
Claremont’s location is 20 to 30 minutes from downtown Orlando, depending on traffic. For those commuting into the city, drive time is a consideration. However, for remote workers or those with suburban jobs, the trade-off of more space and homeownership is often worthwhile.
Advice for Sellers in Claremont
Resale sellers in Claremont face stiff competition from new construction, which can offer lower monthly payments even at higher list prices. To compete, sellers must price aggressively or offer concessions such as financing assistance or repair credits.
Homes in excellent condition with modern features are still selling, but properties that need updates or repairs are staying on the market longer. Buyers coming from Orlando’s rental market expect move-in-ready homes and will compare resale listings directly to new builds.
Sellers should consider listing their homes at least 20 percent below comparable new construction or be prepared to negotiate on price and offer incentives. Buyers are seeking value and are unwilling to stretch beyond their current rent-equivalent payments.
The Bottom Line
Orlando renters can now buy homes in Claremont for the exact monthly cost as renting in the city. Builders are absorbing most of this demand by offering financing incentives that make new construction highly attractive. For renters ready to build equity rather than pay rent, the numbers finally add up.
“We’re seeing people move from Orlando into Claremont and trade rent for ownership,” Mobley says. “It’s the same number for them, so why not own?”
This article provides information about current housing costs and market trends. It is not legal, financial, or investment advice. Prospective buyers should run their own numbers and consult a lender before making any housing decisions.
