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Why Florida is the Ideal Investment Property Market

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One of the most essential elements of a successful real estate investment strategy is knowing the best places to invest--as the old adage goes: “Location, location, location.” It may be simple, but it’s undeniably true. If you are looking for promising investment properties to diversify your portfolio, a great option is the Florida market—one of the most active and lucrative in the entire country. The following is a break-down of why Florida is a prime location for savvy investors looking for areas that will produce reliable passive income well into the future. 

 

Job Growth


 
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Similar to California, Florida has long been at the top of investors’ preferred markets. The unique convergence of retirees, snowbirds, job hunters and international investors has boosted home prices and fueled the local economy. Florida features a thriving economic scene that is supported by world-class industries spanning virtually every sector, including healthcare, aerospace, and finance. It is the host state to several Fortune 500 companies from Hertz to Office Depot. Per a recent market study conducted by the Bureau of Labor Statistics, Florida boasts one of the highest job growth rates in the nation. This suggests that investing in real estate in Florida is a smart move in order to tap into this bustling economy—which draws a steady stream of viable renters and homebuyers seeking a wide array of housing options from rental units to single-family homes. With a private sector growth rate that ranks only behind Texas, opportunities for growth across all sectors look promising, which is great news for aspiring investors seeking market stability.

 

Population Growth


 

The Census Bureau reports that somewhere in the neighborhood of 900 individuals move into Florida permanently every single day—a figure that represents net in-migration. This data point stands for when you take into account all the people leaving the state, moving to the state, deaths, etc., Florida’s population still expands nearly 1,000 people every day. There are a number of factors that are driving this exponential influx of new Floridians—to include:

 

  • Lower living expenses

  • Warm climate

  • Economic opportunities

  • Reduced taxes

  • Affordable retirement


 

Lifestyle


 
palm tree
One of the most common wishes on every beach-lover’s wish list is to own a property near the coast. But in addition to the obvious plus of offering a sunny escape from reality, a beach property in Florida can also be a profit-generating asset. Based on a recent report from Rented.com, the Sunshine state has more lucrative vacation rental communities than any other state in America. The study compiled a multitude of factors including real estate values, property taxes, median maintenance costs, occupancy rates and more—and Florida was collectively the top spot for investors seeking optimal profit margins. With miles upon miles of pristine shoreline and a host of recreational offerings, the unique, active lifestyle afforded by the idyllic Florida landscape is sure to continue to attract a steady stream of tenants well into the future.

 

Market Resiliency


 

Just like other major markets across the nation, the Florida real estate market was adversely impacted by the pandemic, with transactions in the second quarter of 2020 dipping over 19% year-over year. Fortunately, recent evaluations conducted by the Florida Realtors Association indicate that the housing market is gaining steam and is exhibiting somewhat of a resurgence. At the beginning of 2021 the year-over-year closed sales of single family residences increased by 18% and there has been a similarly dramatic uptick in the sale prices of cash flow properties that could prove to be smart moves for aspiring investors. According to data from Zillow, the average home value of a Florida property was around $270,560—an 8.6% jump from just a year ago. These trends suggest that Florida is one of the most affordable national markets to purchase a house with great potential to garner a healthy return on investment.

 

 

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