Florida Ranks High for Best Buys in Investment Properties

Orlando luxury homes, Fort Lauderdale luxury homes, and Cape Coral luxury homes are just a few of the markets watch when it comes to the areas in Florida where investors might want to examine a bit more closely.

The real estate markets in Florida are picking up, and although there have been ups and downs, the industry as a whole seems to be stabilizing. As such, investors still have an excellent opportunity across Florida when it comes to placing their money into rental properties. According to a recent report from Forbes, the economic conditions indicate continued strength in the rental market.

Florida and the National Economic Recovery

Florida dominated the list for the best cities where investors can expect to get the highest return on their investment dollars. Screening the 100 largest Metropolitan Statistical Area (MSA) and Divisions (MSD) across the country, Forbes teamed up with data company Local Market Monitor. Examining areas with populations of 600,000 or more, the survey group searched for cities that showed characteristics which typically would be deemed good investments, including a strong population growth, healthy job development, and an expectation of home price appreciation.

Of the top 20 real estate markets across the U.S. that were deemed Best Buy Cities for 2016, Florida took seven of the spots. Clearly, there are good values to be had in Florida!

Florida Cities Identified as Best Investments:

  • Orlando: Average Home Price $202,809
  • Fort Lauderdale: Average Home Price $258,577
  • Cape Coral: Average Home Price $211,531
  • North Port: Average Home Price $245,010
  • Sarasota: Average Home Price $245,010
  • Tampa: Average Home Price $193,371
  • West Palm Beach: Average Home Price $285,00

Analysts admitted surprise that a single state could nab so many positions. But on further consideration, there are factors that definitely that contribute to this economic opportunity in the Sunshine State but also can make it more volatile than different parts of the country.

Retirees, second-home buyers, and investors, which are a large part of the Florida real estate market, stopped buying properties during the economic downturn and caused housing prices to tumble dramatically. Now that the economy is growing, buyers are back and giving the area a welcomed boost back to the real estate markets.

As vacationers and retirees get back to the business of buying and moving into Orlando luxury homes, Fort Lauderdale luxury homes, and Cape Coral luxury homes, these new residents need services. This leads to a steady stream of jobs and with jobs comes the need for rental properties.

According to the Forbes reports, Florida added nearly a quarter-million jobs in 2015, which means more inventory is needed to satisfy the needs of all kinds of renters.

Harvard University Study on Rental Market Confirms Continued Demand

Another study on the matter of investment rentals was conducted by Harvard University. Researchers are predicting the next decade to demonstrate an even greater demand for rental apartments and houses.

From aging baby boomers choosing to sell their Orlando luxury homes and cash out their home equity in exchange for hassle-free renting to millennials who just aren’t as eager to buy homes for sale in Orlando as previous generations were, the real estate market dynamics are changing in Florida. Now may be the best time to capitalize on it!

Florida Realty News
Florida Realty News
Berkshire Hathaway HomeServices Florida Realty, a wholly-owned subsidiary of WCI Communities, has over 39 locations and more than 1,650 real estate sales professionals and team members serving 17 counties throughout Florida.
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