The theme park boom that shook American real estate and affected Universal and Disney employees
According to Statista analytical solutions, Disneyland Paris registered approximately 5.5 million visitors in 2022. In the United States, and during the same period, more than 10 million people did the same at the Universal Studios Florida theme park. These figures, although indicating a gradual recovery of the sector, are still some way off from pre-pandemic figures. Although, of course, they confirm the excellent moment that the international companies of Disney and Universal are going through with their presence in Orlando, the world capital of amusement parks.
And in turn, it is also the main real estate focus in the country, or at least one of the cities most affected by the country’s housing bubble. In addition to the millions of tourists who wander through Mickey Mouse, the Simpsons or Hogwarts Castle each year, more than 220,000 employees of the Walt Disney World complex and nearly 30,000 employees of Universal Studios Florida do the same. A group of more than 250,000 people most affected by the crisis in the region Which practically destroys the entire country.
Thus, Orlando is at the forefront of a rapidly growing general industry trend, especially as major employers like Universal and Disney look to close the area’s workforce housing gap. And the solution is none other than giving up hectares and land Create new jobs for those employees and Thus stressed areas can be reduced, which is a result of lack of demand.
15 houses per 100
Not surprisingly, according to the National Low Income Housing Coalition, the Orlando metropolitan area, which includes the cities of Kissimmee and Sanford, has such a shortage of affordable housing that the density is only 15 available properties for every 100 low-income households. The worst figure in the entire United States.
And the state of Florida has been one of the 50 states where home values have increased the fastest, according to Bloomberg, due to several factors, The confluence of job growth, migration and housing overproduction that has put pressure on residents, On the other hand, overproduction is not taken into account as part of the solution, since its only consequence is increased upward pressure on housing prices. Almost an untenable situation: The average tenant in the area could see their monthly rent increase by $600 between the beginning of 2020 and the beginning of 2023.
Universal and 1,000 new homes
It seems that Universal has found the solution to the needs of its employees: a project in which it aims to build 1,000 homes in a period of just 3 years. Construction of the design has already begun on 20 hectares of land donated by the group for this purpose, and it is scheduled to be inaugurated next year in 2026.
As such, it is a mixed-use development that promises to provide tenants working in the service industry with a short commute to nearby tourist attractions and hotels. Project, Called Catchlight Crossings and built in partnership with local developer Wendover Housing Partners, According to Bloomberg, construction began in November.
Similarly, the financial company has also announced the potential rental prices of new homes built by Universal, which may vary Between $400 and $2,200Depending on the one hand on the “income qualification” and, on the other hand, on the typology of each house (currently the rent for a two-bedroom property in the area is around 1,900 euros).
However, Catchlight Crossing will also include amenities and services such as a medical center, recreation area, and community pool. In addition to bus and train connections with the theme park.
Jonathan Wolf, Founder and CEO of Wendover The benefits of catchlight crossings were emphasized on the assumption that they are “Improving the lifestyle of many people, giving them the ability to move around.”
For its part, Disney intends to do the same with 80 hectares and build about 1,500 new homes (theoretically ready for 2026), At a location adjacent to Flamingo Crossing Village, one of the entertainment company’s largest complexes at Disney World.
(tagstotranslate)Housing – Real Estate