Orlando vs Raleigh

**Home-Price Appreciation** Both markets have cooled sharply from their pandemic peaks, but Raleigh is holding a slight edge in recent appreciation. As of Q2 2026, Raleigh posted a +1.1% year-over-year gain in its FHFA House Price Index, while Orlando came in at +0.8% YoY over the same period. On a quarter-over-quarter basis, Raleigh edged down just -0.1% in Q2 2026, whereas Orlando pulled back a more notable -0.5% QoQ in Q2 2026. Neither market is appreciating at anything close to the double-digit rates both saw in 2021–2022, and both have experienced brief quarterly dips in the past year, signaling that affordability constraints and rising inventory have largely neutralized seller pricing power for now.

**Construction & Population** Orlando remains a construction powerhouse in absolute terms, issuing 2,008 building permits in July 2026, though that figure is down 3.6% versus July 2025. Raleigh authorized 1,538 permits in July 2026 — a much steeper 17% drop compared to July 2025. Raleigh's sharper permit decline is notable given that its population is growing faster: +2.36% year-over-year as of the 2025 Census estimate, versus +1.29% YoY for Orlando. Slowing supply in a faster-growing market could put more upward pressure on Raleigh prices over time, while Orlando's larger and more stable permit pipeline may continue to moderate appreciation there.

**Labor Markets, Income & Rents** Raleigh's labor market is meaningfully tighter. Its unemployment rate stood at 3.2% in July 2026 (not seasonally adjusted, BLS LAUS), actually improving from 3.4% a year earlier in July 2025. Orlando's unemployment rate rose to 4.7% in July 2026 from 4.1% a year earlier in July 2025 — a full 1.5 percentage-point gap between the two metros that reflects Orlando's heavier reliance on hospitality and tourism employment. Raleigh's median household income of $102,144 (ACS 2024) also runs substantially above Orlando's $81,044 (ACS 2024), a gap of roughly $21,100 that shapes affordability and purchasing power in each market. On rents, Orlando's HUD FY2026 two-bedroom Fair Market Rent is $1,972/month versus Raleigh's $1,750/month — a $222/month difference that may matter to investors underwriting rental yield or to relocators deciding whether to rent first.

**Cost of Living, Taxes & Trade-offs** Raleigh is approximately 3% cheaper on an overall cost-of-living basis, with a BEA Regional Price Parity of 98.2 (US = 100, 2024) versus Orlando's 101.4 (2024). On property taxes, both metros carry moderate effective rates — Orlando at 0.74% and Raleigh at 0.66% — and the gap translates to roughly $320 more per year on a $400,000 home in Orlando. The more consequential tax difference is state income tax: Florida levies no state income tax on wages (2026), while North Carolina applies a flat 3.99% rate (2026). For a household earning Raleigh's median of $102,144, that flat rate represents a meaningful annual obligation that partially offsets Raleigh's lower cost of living and lower property tax rate. Orlando buyers should factor in Florida's well-documented property insurance cost pressures, which are not captured in the effective tax rate but can add thousands annually, particularly for investors managing short-term rental properties.