The Lakeland housing market has long been popular with both homebuyers and renters. But as we enter 2025, a noticeable shift is happening: More residents are choosing to rent rather than buy.
Whether you’re an investor looking to capitalize on the growing demand for rentals or a potential homeowner weighing your options, understanding the dynamics of renting vs. buying property in Lakeland can help you make an informed decision.
The Current State of the Lakeland Housing Market
The real estate market in Lakeland, FL, is experiencing steady growth, but rising home values and increasing interest rates have made homeownership less affordable for many.
As of January 2025, the median home price in Lakeland is approximately $315,086, a slight increase from the previous year. Meanwhile, the median sale price is around $308,000, indicating that homes in Lakeland are selling close to their list price.
However, despite strong demand, the market is more constrained than in previous years. Housing inventory remains tight, meaning homes sell after an average of 62 days on the market—a significant increase from 43 days last year. This shift suggests that we are moving away from a seller’s market and into a buyer’s market, where negotiating power is becoming more balanced.
Why More Residents Are Choosing to Rent
There are several key reasons why renting is becoming the preferred option for many Lakeland residents:
1. Affordability and Financial Flexibility
Buying a home requires a down payment, closing costs, and property taxes, which can add up quickly. Due to rising interest rates, monthly mortgage payments are becoming increasingly expensive. When you add in additional costs like home maintenance, repairs, and insurance, the financial burden of homeownership can be overwhelming.
In contrast, renting offers predictable monthly payments without the long-term commitment of a mortgage. Renters don’t have to worry about major repairs or maintenance costs, making it a financially sound option for those who prefer flexibility over stability.
2. Lakeland Home Prices Are Rising
While Lakeland home prices remain lower than the national average, they are still increasing.
The median price per square foot is around $180, down slightly from the past year, but home prices continue to rise overall. Many potential buyers find themselves priced out of the market, making renting a more attractive alternative.
Moreover, as home prices increase, rental prices tend to follow. While renting is currently a more affordable option, those who secure leases now may benefit from lower rental rates before further price hikes occur.
3. More Flexibility for Families and Professionals
Renting provides greater flexibility for individuals and families who move frequently due to work, education, or lifestyle preferences. Lakeland’s proximity to Orlando and Tampa makes it a desirable location for commuters, who can stay mobile without the hassle of selling a home.
Additionally, renting makes sense for families with school-age children. Lakeland is home to 58 public schools and 33 private and charter schools, but parents need to verify enrollment eligibility based on school zoning. Renting allows parents to move closer to preferred schools without the commitment of purchasing a property.
4. Lower Risk Compared to Homeownership
Homeownership involves financial risks, such as fluctuations in the Florida housing market, unexpected repair costs, and potential flood risk in certain areas.
With renting, you don’t have to worry about the real estate market affecting an investment. Instead, you can enjoy stability without being tied to market fluctuations.
5. Changing Lifestyle Preferences
Many millennials and younger generations prioritize experiences over long-term financial commitments. Renting allows these groups to travel, explore different cities, and switch jobs without being tied down to a mortgage, making it an appealing option.
Additionally, retirees and empty nesters may choose to rent to downsize their living arrangements and reduce the responsibilities associated with homeownership.
The Role of Real Estate Investors in Lakeland’s Rental Market
The shift toward renting is creating new opportunities for real estate investors. With the growing demand for rental properties, investing in Lakeland’s rental market can be a smart move.
Why Investors Should Consider Lakeland:
- High demand: More residents are looking for rentals, ensuring steady occupancy rates.
- Steady appreciation: Home values continue to rise, making it a strong long-term investment.
- Attractive rental yields: Investors can generate passive income while benefiting from property appreciation.
- Growing job market: Lakeland's economy is expanding, attracting new residents who need rental housing.
- Tourism and seasonal rentals: The city’s proximity to Florida’s major attractions creates short-term rental opportunities.
Should You Buy or Rent in 2025?
Deciding whether to buy a house or rent depends on your financial situation, lifestyle, and long-term goals. Here are a few questions to ask yourself:
- Can I afford the down payment, mortgage, and other costs of homeownership?
- Am I planning to stay in Lakeland, FL, for several years?
- Do I want the flexibility of moving without worrying about selling a home?
- Am I prepared for maintenance, repairs, and property taxes?
Renting might be the smarter choice in 2025 if you prioritize financial flexibility, lower upfront costs, and reduced risk.
How PMI Arrico Can Help You Navigate the Rental Market
Whether you’re a real estate investor looking to maximize rental income or a landlord who wants a hassle-free property management experience, PMI Arrico is here to help.
Why Choose PMI Arrico?
- Expert Market Knowledge: Our team of experienced real estate agents understands Lakeland’s housing market trends and can assist you in finding the right rental opportunities.
- Comprehensive Property Management Services: We handle everything from tenant screening and property maintenance to rent collection and lease agreements, ensuring that your investment remains profitable.
- Maximizing ROI: We help landlords and investors achieve the best possible returns on their properties by optimizing rental pricing and reducing vacancy rates.
- A Stress-Free Landlord Experience: Say goodbye to the hassle of managing rental properties on your own—we take care of all the details for you.
If you're considering renting out your property or need assistance with property management in Lakeland, contact PMI Arrico today to learn more about how we can help.
