10 Best Places to Invest in Real Estate In Florida

10 Best Places to Invest in Real Estate In Florida

Investing in real estate is a profitable venture, but there’s a catch: making a profit in real estate investment requires skill, research, and know-how. Without these key ingredients, you could wind up making some costly mistakes. 

Florida isn’t only famous for its tropical weather, laid-back lifestyle, and bustling nightlife; it also has a real estate scene bursting with potential. Whether you’re a novice or a seasoned real estate investor, there are a lot of great opportunities in the Florida real estate market.

As with most markets, Florida real estate suffered a hit in 2020. However, it has exceeded expectations and reached all-time highs since recovering from the pandemic. Many experts predict that the Florida real estate scene will continue to record significant growth in the coming years.

If you’ve been thinking of investing in Florida real estate, now is probably the time. This post will give you the scoop on the best places to invest in Florida.

Why Invest in the Florida Real Estate Scene?

In case you’re not convinced, here are some reasons why investing in Florida real estate is a great idea.

Booming Real Estate Market

Pandemic or not, the Florida real estate market remains one of the most profitable in the U.S. Its popularity as a vacation spot and a business hub makes for a very lucrative real estate market. In the past five years, home values have increased by 69%, with a 29.4% home price increase in the last year. 

Fast-Growing Population 

Florida is currently the third-largest state by population in the U.S. According to U.S. News and World Report, the top 10 fastest-growing places in the U.S. from 2021 to 2022 are all in Florida. With such a booming population, investing in real estate in Florida is a no-brainer.

Remember that an increase in population will translate to a rise in tenants and potential home buyers. 

Dynamic Job Market

Teeming with diverse job opportunities in several sectors (ranging from healthcare to software, information, and business services), Florida is home to the headquarters of several global businesses like NASCAR, Burger King, AutoNation, World Atlantic Airlines, and TechData.

Between January and September 2021, job growth in Florida increased by 5.4% compared to the national average of 0.8%, and in September alone, Florida gained a total of 84,500 jobs. These figures indicate that investing in Florida real estate is a profitable venture that will yield significant returns.

Diverse Lifestyle 

Several lifestyle preferences and relaxation centers have made Florida the ideal weekend getaway or family holiday. Its warm climate, natural theme parks, relaxed tax laws, and thriving nightlife also make it one of the best states to stay in the U.S. Little wonder that its population seems to be growing by leaps and bounds.

Best Places to Invest in Real Estate in Florida 

Orlando

Orlando boasts some of the best residential real estate in the whole of Florida. Its agreeable weather (a perfect cross between the Miami heat and the subtle winter chills of Jacksonville) and low cost of living make it a prime area for long-term leases.

According to U.S. News, Orlando ranks #9 in the fastest-growing places, meaning there is an ample supply of long-term tenants. Orlando is home to Disney World and Universal Studios, which is an added advantage if you’d rather invest in short-term rentals like vacation homes.

Miami

You can’t talk about commercial real estate in Florida without mentioning Miami. Miami has a thriving business hub in retail, finance, and technology. Three of America’s top 10 retail destinations are situated in Miami. Many finance and technology companies are opening branches or moving their headquarters to Miami due to their relaxed COVID-19 policies.

Miami is well on its way to becoming the crypto center of the U.S. with the implementation of the MiamiCoin and several crypto-forward policies. Still, commercial real estate isn’t the only flourishing market in Miami. Its population and a steady influx of tourists make it a good place to buy residential real estate.

Tampa

Situated on the West Coast of the Sunshine State, real estate in Tampa, Florida is thriving as its population increases 139% faster than the U.S.

Tampa’s average home price and monthly rent are 9% and 7% below the average national value respectively. This translates to a more consistent and stable means of generating cash flow for real estate investors.  

Jacksonville

Jacksonville is a rapidly growing city with a bustling business scene; several Fortune 500 companies are located here. Forbes ranks it as the 22nd best place for business and careers and one of America’s best places for job growth.

Jacksonville offers some of the best real estate deals in Florida. The cost of living is low, housing is more affordable (8% less than the national average), and home values are predicted to increase by 8.4% in the next year. With a median sale price of $281,000 (a 19.6% increase in the past year) and an average rental rate of $1,411, Jacksonville is one of the best places to invest in real estate in Florida.

St. Petersburg

St. Petersburg, located in the Tampa Bay area, is popular for its bustling art scene. It boasts of art centers like the Dali Museum, the Mahaffey Theatre (home to the Florida Orchestra), and the Museum of Fine Arts. It’s also popular for recreational activities like golfing, boating, and beach-going.

According to Redfin, St. Petersburg has a median sale price of $357,000, rising by 22.7% year after year, with homes staying on the market for an average of 8 days.

St. Augustine

St. Augustine is the oldest city in the U.S. and one of Florida’s most visited cities. As a result, St. Augustine is a great place to buy a rental property in Florida. It’s especially profitable to invest in short-term rental properties and vacation homes to generate passive income.

Palm Beach County

Located in the southeastern part of Florida, Palm Beach County is the third most populous county in the state of Florida. Its year-round inflow of tourists and growing population make it a prime location for long-term and short-term rental real estate investments.

With a median listing price of $400,000 (a 14.3% increase in the past year) and properties staying on the market an average of 42 days, the Palm Beach County real estate market is as hot as ever.

Sarasota 

You can’t list prime real estate markets in Florida without mentioning Sarasota, a city south of Tampa home to long beautiful beaches complete with shallow waters and breathtaking sunsets. Its 22.5% increase in the median selling price in the last year and current reduction in median days on the market (8 days compared to 33 days last year) indicate a healthy real estate market boasting some of the best vacation property investments

Ocala 

Ocala is located in central Florida and is home to several tourist attractions like the Appleton Museum of Art and Silver Springs State Park.

Like most of the cities in Florida, the Ocala real estate market is also thriving. Its home prices upped by 34.8% in the last year, with listings staying on the market for an average of 15 days compared to 54 days last year. 

Lakeland

Lakeland is another very competitive housing market in Florida. Its home prices have increased by 33.5% in the past year, with its median price going for $324,000 and listed homes generally spending an average of 8 days on the market. 

Florida Is the Place to Be

The Florida real estate market is one of the fastest-growing markets in America, and the places highlighted above are some of the best markets to invest in, in 2022. However, knowledge of the most profitable places alone is not enough. You should conduct detailed research on the properties available before making an investment choice. 

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Alex Zurn

Alex Zurn

Alex Z. is a former professional basketball player with five years’ experience as a mortgage professional in the secondary markets. He is also a multifamily investor and property manager of four years, and has been tracking the economic status of the housing market and first time home buyer journey for two years now through his Instagram account (@howofhousing) and website, www.howofhousing.com. When he is not analyzing new deals, getting to know new markets, or creating content, Alex loves to travel, spend time with close friends and family, and will (one day) get a new dog and name him “Kobe”.

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