Regional Review: Orlando’s economic growth driven forward by population growth and strong performance across multiple industries
Regional Review is a year-end series from Capital Analytics that looks at key developments throughout the year and sets the stage for what’s to come in the near term.
December 2024 — Orlando has solidified its status as the fastest-growing metropolitan area in Florida and the second fastest-growing market in the United States. Growth in the region is being driven forward by an increasing influx of population and strong economic performance across multiple industries and sectors.
Orlando’s growth is being largely fueled by a growing population. Orlando’s population has been growing steadily over the years, with a total population of 238,300 in 2010, 307,573 in 2020, and 334,490 in 2024. In fact, Orlando’s population growth is amongst the highest in the United States at the moment. In 2022 and 2023, Orlando was the second fastest-growing large metropolitan area of the country’s top 30 most populous regions. Orlando was second only to Austin, Texas, in terms of population growth, and is now the 21st most populous region in the United States. The Greater Orlando and Central Florida region must now prepare for an estimated projection of an additional million people that will be arriving by 2045.
“The rapid growth in the Orlando area, with nearly 1,000 new residents per week, attracts attention from big corporations eager to establish a presence here. This influx is bolstering our local markets and creating a unique business opportunity,” said Pedro Turushina, president and CEO of the Hispanic Chamber of Metro Orlando, in an interview with Invest:.
Orlando’s economy surpassed $200 billion in 2023, making it the sixth fastest-growing large economy in the United States. All counties in Orlando (Lake, Orange, Osceola, and Seminole) are seeing growth rates above the national average. This is a reflection of how Orlando’s Metropolitan Statistical Area (MSA) has become the fastest-growing economy in Florida. Orlando has also become the No. 6 fastest-growing economy amongst the 30 most populous regions in the country.
“Central Florida and the Greater Orlando market have fared much better than most other markets because our population is growing at a pace that drives a lot of economic growth and demand for products and services, including banking. Additionally, Central Florida is a great place to live, work and play. Moreover, low taxes have a high impact on immigration patterns from other parts of the country. As they look to relocate, both companies and individuals choose Central Florida at a very high rate,” Joe Losch, market president and senior vice president for Ameris Bank told Invest:.
Tourism and hospitality are known to be strong drivers of economic growth for the Greater Orlando region. Orlando is known as ‘The Theme Park Capital of the World,’ making it top tourism destination in the United States with renowned attractions such as Walt Disney World, Universal Orlando Resort, and SeaWorld. As of 2023, the Central Florida region’s tourism industry hit a record of $92.5 billion in economic impact, supporting 464,000 local jobs, spawning $12.6 billion in government revenue, and providing a $7,400 annual tax reduction for local households.
“The Orlando region’s market has grown tremendously. Orlando is the second fastest-growing out of the nation’s 30 most populous regions. Tourism is driving a lot of this, with the expansion of multiple theme parks. Disney, in particular, will bring investments and expansions worth $17 billion over the next 15 years, and new hotels have also been announced. This is all driving growth in our region, which contributes to an increasing population,” said Tony Jenkins, the central Florida market president of Florida Blue, in an interview with Invest:.
However, it must be highlighted that Orlando is not just a tourist destination; today the city leads the nation across multiple thriving industries. Some of the key sectors in Orlando are advanced manufacturing, biotechnology and pharmaceuticals, medical technology, as well as aerospace and defense. The city is also making strides when it comes to the development of semiconductors, autonomous vehicles, digital media, innovative technologies, fintech, simulation and more.
As of October 2024, the largest non-farm industry employers in Orlando are (1) leisure and hospitality; (2) professional and business services; (3) trade, transportation, and utilities; (4) education and health services; (5) and government. Simultaneously, Orlando is doing relatively well when it comes to employment since the unemployment rate falls slightly below the national average. The unemployment rate in the United States was 3.6% in October 2023 and 3.9% in October 2024. Meanwhile, the unemployment rate in Orlando was 3.2% in October 2023 and 3.5% in October 2024, respectively.
As we head into 2025, population growth and business expansions will continue to fuel Greater Orlando’s economic growth. Central Florida’s main industries and key sectors will remain as the primary drivers of growth in the region, from tourism and hospitality to healthcare, advanced manufacturing, aerospace and defense.
