Florida, the beautiful Sunshine State, has always been a destination for movers hoping to find a better climate and a more leisurely way of life, or even just a vacation home. Real Estate in Florida is always a good value due to a low cost of living and unique tourist attractions in the area. Trust in the market was rocky at the start of the pandemic, but things are starting to change now as vaccines are being distributed and job growth revamps, and property values are rising to the occasion. This paired with record low mortgage rates is creating high demand for housing and a very competitive market, and there are many reasons why this may be the perfect time to make an investment in real estate in Florida.
Now that the Real Estate market has rebounded and is on an upward trajectory, it is easy to see many reasons why the great state of Florida is a great place to invest in real estate in 2021. First, there is expected to be a population increase in Florida as people move from urban areas towards a different lifestyle in reactions to the pandemic. We have already seen this shift in the population from cities to more rural areas in recent months and we have also seen a shift in the amount of people who would like to own a house instead of simply renting. According to Forbes, Florida holds the largest number of cities worth investment in the United States. The cities themselves with their low cost of living matched with a low unemployment rate are helping to increase Florida’s overall value as a real estate investment hot bed. We will discuss how you can differentiate between the cities in Florida and decide where the best places are for you to invest.
Tampa and West Palm Beach
The trend of people heading for more rural areas during the pandemic is not expected to last forever, and the market is expected to turn towards affordable cities that offer a modern lifestyle as younger people and college students start to drive the markets in Florida. Tampa has become one of the best places in Florida for a good median rent and value for your investment in the housing market. Average rental prices on the rise is good for homeowners as well, as they can take advantage of the short term or home rental market and buy property elsewhere and continue to invest. The median home value in downtown Tampa is about $286,066, which is a wonderful starting point at which to negotiate. Tampa is home to professional sports teams and wonderful downtown museums and architecture. This can increase the value of your property, as well, if you are well connected to the local entertainment and culture. The dynamic local market in West Palm Beach has led to it being called one of the best places to invest in Florida. The reasonable prices and the location near the beautiful ocean views and beaches, are some of many reasons why you should invest in real estate in West Palm Beach. Once again, you can use your property as an investment property by renting it out to beachgoers, or it could become a home away from home or a place to retire. With a $273,900 median price to own and a high rental price in the area, you could make great long term returns on your investments.
Fort Lauderdale and Sunny Isles
Fort Lauderdale, Florida is also one of the best cities, as far as rental price and real estate investing in Florida, with a median home value of $371,651. The job market is good there long term, and there is a built-in community of beachgoers as it is one of the best places in Florida for a relaxing stay by the ocean. Fort Lauderdale is known as a relaxing place to retire, and is home to an older section of the population in Florida. As we continue towards a more healthy America, we will see a boom in rentals as people flock to the beach for a getaway from the life they have been stuck in since the beginning of the pandemic. The slower, more laid back beach atmosphere of Fort Lauderdale is a place we expect to see heavy traffic in the coming months. The average rental price in Fort Lauderdale is currently about $2,031, and we expect to see a rise in short-term rentals as vaccinations increase and people start vacation planning. The beach life aspect will have a similar effect on the Sunny Isles, a lesser known, but affluent island community in south Florida. The closeness to cities like Miami and Tampa Bay cannot be overstated in value. The property prices in Sunny Isles can be adjusted to account for proximity to Miami Dade county and its factors. A higher priced median home value at $460,371 can create opportunities for rent and investment if the local cost of living is too high to live there year round. It still has so much value as a vacation spot, and the demand for housing there is always high as the local economy continues to boom from Miami tourism. Miami itself doesn’t make the list, due to an expensive market that is currently oversaturated, but being nearby can certainly allow you to gain some of the benefits that Miami offers such as its beaches and nightlife.
Orlando and Jacksonville
Orlando, Florida is the #1 city for real estate investing nationwide, in part thanks to its proximity to Disney World and other amusements has its own built in tourism industry creating high demand for rental property year round. With a median sales price of $278,584 and a median rent price of $1,486, investing in a vacation home near Disney can net you thousands of dollars a month, and you can build in the surrounding entertainment to the value of your home. Some folks might even enter term rentals in order to work at Disney or a rival park during the busy season. Real Estate markets like Orlando are always worth investing in, as you will have a built in customer base for rentals as the pandemic gets eased. We expect home values to rise considerably once the vacation boom happens and both vacation-goers and employees head back to Orlando. Jacksonville is a great real estate market to invest in on this list due to positive growth in recent years. The median home value in Jacksonville is one of the lowest in the country at $218,194, but is rising more rapidly in recent years. Both population growth and job growth in Jacksonville are among the highest in the country and projected to rise considerably in the near future, so this would be a good time to invest low on a home. The University of North Florida being located in Jacksonville, Florida is also a boon to rental income, as students will always be entering and leaving the area, making the demand for housing quite high overall in Jacksonville. The university provides many career opportunities, and employees are in need of both long term rentals and short term rentals. Population and job growth will be key as we continue to see Jacksonville become one of the top places to invest in the Florida real estate markets.
Cape Coral and Doral
Cape Coral, Florida is well known among investors as a place to find great cheap seaside homes at a median $259,536. It is ripe for all types of rentals, and a beach house can be easily rented out almost year round. Of all the cities in Florida we have discussed, this one might be the most up and coming, and possibly one of the best places to invest in real estate in Florida, because of the low price to get into the rental market. Investors are catching on though, with prices rising more sharply since 2019. The local economy is thriving and will continue to improve as more healthy Americans go back to the beach for a vacation. This is one of those cities to consider if you want to be the next great AirBnB operator. Cape Coral, Florida is one of the lesser known and more quiet locales on this list, but we don’t expect it to stay that way for long, as people start to stumble upon these great real estate deals. Doral, Florida is a beautiful and luxurious city home to low unemployment rates and some great tourist attractions. Home prices may be high, but you are in a luxury area, and the rental prices can be raised to match if you hope to invest. Golf courses and nature trails abound in Doral. The home values in Doral are expected to climb higher and higher over the next few years, and the north-central location will continue to draw tourists and increase the rental market because of its proximity to other local cities like Orlando and Tampa, while being its own city at its own speed. Being close to a large city can sometimes be better than being within that city, if local taxes on property are lower and you can offer some solace from the big city lifestyle. Consider these ideas to help advertise your rental property.
Florida is a real estate hot bed that we feel is the next best state to invest in. We discussed the best known cities to get a great bang for your buck, and we also discussed how to get the most out of a rental property in all these great Florida cities. Buying real estate in Florida in 2021 might be the best bet you can make if you want to get invested in real estate.