A luxury resort community in Central Florida, once a lucrative investment for short-term rentals aimed at Disney enthusiasts, is now facing a market slowdown, with nearly 1,000 homeowners experiencing a significant drop in property values and rental demand. Reunion Resort in Kissimmee, located 11 miles from Walt Disney World, was known for its large homes, championship golf courses, water park, and its allowance of short-term rentals, attracting investors globally.
During the pandemic, the area saw a surge in property sales, with 66 homes selling for over $1 million in 2021 alone, a figure higher than the previous eight years combined. Three properties sold for over $5 million and one for more than $6 million. However, the market has since shifted dramatically. Currently, approximately 950 homes are listed in Reunion, with about 300 within the resort itself, and only 20 under contract. This represents roughly 23 months of inventory at the current sales pace, far exceeding the average of four and a half months for the state of Florida.
Properties that were once selling for over $1 million are now listed at significantly lower prices and are remaining on the market for extended periods. For example, a five-bedroom, 3,326-square-foot home featuring Disney-themed rooms, which sold for $1.25 million in 2022, was relisted for $875,000 and had been on the market for 133 days. Similarly, a home with themed children's rooms, listed for over 130 days, saw a price drop to $490,000 from its 2023 sale price of $694,000.
The downturn is attributed in part to worsening economic conditions affecting vacationers and the rising cost of Disney vacations. Local attorney Eric Pacific described the situation as a "full-scale meltdown," noting that the investor dream of generating consistent rental income from these properties is unraveling. Occupancy rates for short-term rentals, particularly for smaller homes, have reportedly fallen significantly. One builder and property owner in Reunion estimated occupancy rates have dropped from around 70 percent two years ago to about 50 percent currently.
A key challenge for the market is the lack of traditional buyers to absorb properties when investors exit. With many of the larger, themed homes requiring substantial annual fees for HOA, community district, and club memberships, the primary potential buyers remain other investors, who are now trying to divest their holdings.
Despite the broader market challenges, a segment of the luxury market within Reunion Resort remains robust. Larger, newly developed mega-villas, priced in the tens of millions, continue to attract high-net-worth individuals, celebrities, and athletes. These properties, often featuring extensive amenities like private spas, themed lounges, bowling alleys, and golf simulators, are commanding rental rates of $4,000 to $5,000 per night. In October 2025, a 15-bedroom, 23-bathroom villa sold for a record $14.24 million. Another 13-bedroom, 16-bathroom property was listed for $12.5 million in May.
For these ultra-luxury properties, buyers often view them as secondary or tertiary homes. Rental demand for these high-end homes has reportedly seen a strong performance, with some families opting to pool resources for a single, elaborate vacation in a premium property. Realtors note that this segment caters to a different clientele, often international, who seek amenities and experiences beyond those offered by standard vacation rentals.
While some homeowners in the struggling segment face financial difficulties, experts suggest that patience may be necessary. The belief is that as the economy recovers and tourism rebounds, occupancy rates will increase. The long-term appeal of the Disney destination is seen as a constant, with the expectation that demand for vacation properties will eventually recover, particularly for homes that can offer exceptional amenities and experiences. One builder is even planning to construct one of Reunion's largest homes to date, a 37,000-square-foot mansion, signaling continued confidence in the high-end market.