Blog Post 006: INVESTING IN THE FLORIDA MARKET
Blog Post 006: INVESTING IN THE FLORIDA MARKET
“The sunshine state has been a goldmine for real estate investors throughout its history. From its white sandy beaches to its bustling urban centers, Florida is the place to be for any investor that wants to make a living in the real estate market.
Home to the fourth largest economy in the US, Florida exhibits many key indicators for prime real estate growth. The state has experienced rapid expansion since the 2008 financial crisis, has a low unemployment rate, and is stocked with various attractions that make it one of the most popular tourist destinations on earth.”
Florida Real Estate: The Draw
Florida has several unique characteristics that make it an ideal location for real estate investing.
A Growing Economy – Florida has experienced continued year-over-year economic growth, a competitive job market, and a comparatively low unemployment rate to other US states. All of these factors have resulted in a lucrative, growing real estate market—especially in residential properties.
Population – The state’s population is rapidly increasing. In other words? The demand for housing in Florida is increasing with its population. As more people look for homes and properties become scarcer, the value of those properties will continue to appreciate overtime.
Booming Industries – Many of the most profitable industries in the country call Florida their home. The state is known for its theme parks and sunny vacation destinations, but also retains major companies in the healthcare, banking, and aerospace sectors.
Renting is Popular – Renting is the main source of housing for Florida residents. This presents a great opportunity for real estate moguls to invest in single-family homes or multi-family properties aimed at renters. If you’re weighing out the benefits of investing in commercial vs residential real estate, the lucrative Florida rental market is the true draw to investing in residential.
A Multitude of Locations to Choose From – With 23 municipalities of over 100,000 residents, there are a plethora of options available when choosing to invest in Florida real estate.
Tax Breaks – Florida has no income tax. That incentive alone makes this state a prime location for investment opportunities and an ideal place to call home.
While these impressive dynamics make the entire state of Florida an attractive destination for real estate investment, each individual region has its own unique advantages.
The Top 5 Florida Locations for Investing in Real Estate
There are specific regions within Florida that offer enhanced opportunities for real estate investment. Let’s take a look at five of the top locations.
1. Fort Lauderdale –
Not far from the famous Miami coast, Fort Lauderdale may be Florida’s biggest real estate draw. For one, there is very little space left for new developments, which has resulted in significant year-over-year price growth.
Additionally, the city has one of the highest job growth rates in the state, making it a destination for both renters and buyers. If you are looking for a great place to invest, Fort Lauderdale is a sure bet for continued growth for years to come.
2. Jacksonville –
Sitting peacefully on the Northeast coast of Florida, Jacksonville is a great city for both investors and residents alike. Not only is it considered one of the fastest-growing Florida cities, but it also has the metrics to support lucrative real estate returns, including:
Over 5% annual population growth since 2016
Over 4% year-on-year job growth
More than 9% annual increase in house prices
If those numbers continue, investors who capitalize on purchasing property in Jacksonville will be happy they jumped into the market early. And to get the most out of an investment in this city, consider seeking out property management in Jacksonville, FL to help you run your rental property smoothly and keep tenants happy.
3. Tampa/St. Pete –
The Tampa Bay and Saint Petersburg area boasts a bustling population center with a major sports franchise and a booming economy. The majority of the population resides in single-family properties. This metropolis is a growing real estate hub, in fact, it’s considered one of the best places to buy rental property.
Anyone looking for a high-growth urban center that has an economy suited for rental investments should put Tampa and St. Pete at the top of their list.
4. Orlando –
The home of Disneyworld and an array of other tourist attractions, Orlando is yet another Florida real estate investment center. While you would be forgiven to assume that tourism is the bread and butter of this Central Florida community, that’s actually not the case.
Thanks to various companies moving into the city in recent years, Orlando has experienced a remarkable tech boom. This has only increased its real estate potential, making it an attractive location for further investment. Due to the increased interest in this city’s potential, professional Orlando property management is a must for keeping your rental property in tip-top shape and running smoothly against other competing rental properties.
5. West Palm Beach –
You can find some of the most beautiful beaches in the entire state (or even in the entire country) in West Palm Beach. You’ll also find some incredible prime rental investment opportunities. Whether you are looking for long-term renters or vacation potential, this relatively small urban center has it all.
Despite a low rate of population growth in the area, average income has risen more than 5% a year. This has created a lucrative real estate market, even without considering vacation rentals. All of these intriguing factors mark this beautiful seaside city a unique place to invest, leading to an increased demand for West Palm Beach property management to help maintain a smooth-running rental property.
Want to know more and dig deeper into FL investment tips?
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