Key Takeaways

  • Big Builders Under Fire: Bill Pulte has publicly targeted large homebuilders and mortgage servicers like PennyMac, potentially forcing a shift in how builder incentives and interest rate buy-downs are structured.
  • Accessory Dwelling Units (ADUs): A new bill passed unanimously in the Florida Senate could revolutionize backyard housing by mandating that local governments allow "granny suites" wherever single-family homes are permitted.
  • The Affordability Paradox: While median prices for new builds are higher than existing homes, massive builder incentives—averaging $54,000 per sale—are making new construction surprisingly more affordable for monthly payments.
  • Orlando Market Pulse: Inventory is climbing over the 6-month mark in some sectors, and condos are seeing a significant drop in list-to-sale price ratios due to skyrocketing HOA fees.

Orlando Housing Market: Bill Pulte vs. Big Builders and the New ADU Revolution

February 12, 2026

The Orlando housing market just got hit with a ton of news in the last 48 hours that could fundamentally change how we buy and sell homes in Central Florida. From high-level government tweets targeting the biggest names in homebuilding to local legislative shifts in the Florida Senate, there is a lot to unpack. I’m Brenden Rendo with the Homes of Homes in Orlando team, joined by Joseph Dion of Aptly Home Loans, and we’re diving into the "smoke and mirrors" of new construction and the future of your backyard.

Bill Pulte Takes on the "Big Builder" Advantage

One of the most fascinating developments this week involves Bill Pulte going after massive mortgage servicers like PennyMac. The issue? How large homebuilders use their sheer volume to gain a distinct advantage over medium and small regional builders. Pulte is looking into changing Loan Level Price Adjustments (LLPAs) to make it more expensive for these giants to buy down interest rates.

"He basically came out and said we're changing everything... it's going to cost the builders more to buy down rates, which is interesting because that's what's saving the housing market right now."

Right now, builders like Lennar, D.R. Horton, and Taylor Morrison are offering massive incentives to buy down rates to 4.5% or 5%. This can make a brand-new home at $450,000 actually cheaper on a monthly basis than a $407,000 existing home. If the government restricts these buy-downs, we might see builders forced to drop their actual sales prices rather than relying on incentives.

The Florida Senate’s Unanimous ADU Bill

On the local front, the Florida Senate just approved a bill that could be a game-changer for homeowners. This bill aims to expand "backyard housing," commonly known as Accessory Dwelling Units (ADUs) or "granny suites".

For those who have felt "stuck" in their current home, this bill offers a way out. It mandates that local governments permit ADUs wherever single-family homes are allowed and streamlines the approval process by removing the need for public hearings or special variances.

Key Provisions of the ADU Bill:

  • Rental Freedom: Homeowners can rent these units out long-term, providing a path to increased housing density and affordability.
  • Parking Protections: Municipalities cannot restrict the build by changing parking requirements.
  • Homestead Safety: Importantly, the homeowner retains their homestead exemption.

Orlando Market Stats: The Condo Crisis

In the first week of February, single-family home inventory in Orlando climbed back over the 6-month supply mark. However, the real pressure is in the condo market, which is sitting at 9.5 months of inventory. Skyrocketing HOA fees—ranging from $500 to $1,000 a month—are destroying affordability for many condo owners and making these units much harder to sell.