Buying an investment property can be a rewarding process. However, as with any other business venture, you need to know where to invest your money in the short or long term to maximize your return on investment. Despite high home prices, the increased demand in Florida‘s real estate market makes it one of the most profitable real estate investment locations in the U.S. This article examines the Florida real estate market for different types of investors, investment properties, and the various places to buy real estate. Licensed real estate agents have completed hundreds of transactions for short and long-term investors across the country. Make an appointment with a Florida real estate agent to discuss all your home-buying requirements and wishes.
Here are the most popular and profitable places to invest in real estate in Florida:
- Miami: Ideal for long and short-term rentals
- Orlando Metro: Ideal for traditional investors
- Clearwater: Perfect for an Airbnb property
- Fort Lauderdale: Lots of real estate options at bargain prices
- Jacksonville: Ideal for investors on a tight budget
- Tampa: There are many options for different properties. The market is suitable for those who invest for the first time and have no experience.
- Orlando Sub Markets: This real estate market is perfect for flip investors
- Regions of Tampa: This market suits investors looking for attractive multifamily homes
Having read the list of real estate agents in Florida, you can find qualified real estate agents focused on meeting investors‘ needs. Let‘s look at each area in more detail:
Miami: A Real Estate Market That Offers Plenty Of Options For Long-term And Short-term Rentals
Not only is Miami famous for its spectacular and world-famous beaches and mild climate, but Miami is also a booming real estate market that offers investors many opportunities with a variety of housing options. The region is visited by many tourists, which significantly increases the demand for rental properties and daily rates.
In 2019, 24.2 million people visited Miami. This makes Miami the best market for real estate investment in Florida. The influx of tourists makes the Miami market financially viable for short-term and long-term rentals. Real estate investors can find varied real estate options with an experienced realtor.
Over the past year, real estate prices have increased by more than 28.6%. Buying an investment property in Miami has several key advantages:
- In Miami, rental laws have been relaxed, with prices determined by the market, not the government. This allows those considering renting real estate to get a real return on their financial investment.
- Strong population growth and net migration lead to increased demand for both sales and rental housing.
- The tourism industry continues to expand, bringing over 24 million visitors per year. This fuels the demand for short-term vacation rentals.
- Major infrastructure projects like the Brightline higher-speed rail service connect Miami to other South Florida cities, improving accessibility.
- Miami offers a lot of variety in terms of investment properties, from luxury high-rise condos to modest single-family homes. There are options at various price points.
Overall, Miami‘s combination of market factors makes it one of the hottest markets for real estate investing in Florida right now. Both local demand and tourism support purchases for rental income or short-term rentals.
Orlando Metro: Real Estate Market For Traditional Investors
There are many vital reasons why the Orlando Metro is one of the most profitable places to invest in Florida for traditional investors. Many entertainment facilities, theme parks, and universities of the country are located in this city.
The Orlando Metro is ideal for conventional investors since you can find real estate here at a relatively affordable price. The median home price is $383,026, which is cheaper than in other cities like Miami.
A steady stream of tourists and a thriving job market have made the Orlando Metro an excellent place to buy investment properties at attractive prices. Over the past three years, the number of jobs in Orlando has increased by 11%, adding many new jobs to the city‘s economy. The city is expected to create half a million new jobs over the next decade.
Some key advantages of Orlando for real estate investing include:
- Strong job and population growth, with the metro area adding over 60,000 new residents per year recently. This increased demand keeps sales prices and rents rising steadily.
- Major entertainment and theme parks like Disney World and Universal Studios attract over 75 million visitors per year. This fuels demand for short-term vacation rentals.
- Relative affordability compared to other Florida hotspots like Miami. Investors can find good rental property deals, especially in up-and-coming neighborhoods.
- Good inventory of single-family homes, townhomes, condos and multifamily properties to choose from, at varied price points.
- Major planned developments like SunRail commuter rail and Creative Village revitalizing downtown Orlando.
For those wanting a steady, less volatile market compared to Miami, Orlando is an excellent option with strong fundamentals. The tourism industry brings short-term rental demand, while population and job expansion fuel long-term rentals and sales.
Clearwater: Perfect For An Airbnb Property
Clearwater is one of the best places in Florida to invest in Airbnb properties, with a lot of opportunities to make unique stays, for example, you could make a smart home, a beachfront property, or an inland pool villa.
The price segment for real estate has increased by more than 31.9% over the past year, forcing many residents to rent, not buy, real estate here. Airbnb has a higher monthly rental income compared to long-term rentals. Investors typically make $2,720 on an investment property in Clearwater.
Rent growth also increased by more than 20% in the last quarter. Clearwater is strengthening its position as an investment city and a key tourist destination thanks to its many exciting places, which about 5 million tourists visit yearly.
Some advantages of Clearwater for investors include:
- Clearwater Beach routinely ranks as one of the best beaches in the U.S., attracting millions of visitors per year. This fuels strong demand for short-term vacation rentals.
- Significant population growth and net migration over the past decade, leading to rising demand for both sales and long-term rentals.
- Limited land supply hemmed in by the Gulf of Mexico and Tampa Bay restricts new construction. This lack of space to build keeps property values high.
- High home price appreciation over 30% annually recently has priced many buyers out of the ownership market. Strong rental demand results.
- Clearwater offers great variety in the types of investment properties, from beach bungalows to luxury waterfront condos and everything in between.
With its beaches, amenities and steady market growth, Clearwater makes an excellent location to invest in Airbnbs tapping into the tourism traffic. Both snowbirds and families make it a popular vacation destination.
Fort Lauderdale: Strong Investment Potential
With its vibrant neighborhoods and southern charm, Fort Lauderdale is a great place to buy an investment property, especially if you are happy to do some home remodeling.
The city‘s restaurants, parks, and local attractions draw many tourists. Over the past ten years, the city‘s population aged 25 to 44 has grown by 43%. Fort Lauderdale is optimal for investors who want their real estate purchases to appreciate.
The median home price in the city was $514,908, up 30.4% from a year ago. Buying an apartment or several properties as an investment guarantees a stable and high profit. Additionally, as millennials move into the area, the demand for rental housing is overgrowing.
The average daily rent is $238, and the monthly income is $3,562. Many people move to Florida because of the climate, pristine beaches, and no income tax. Investment properties in Fort Lauderdale are worth checking out.
Advantages of the Fort Lauderdale real estate market include:
- Steady population growth around 1.5% annually, largely driven by domestic migration from high cost of living states.
- Fort Lauderdale airport expansion and Port Everglades cruise port enhance the tourism industry. Over 13 million visitors come per year.
- Major employers like Citrix Systems, AutoNation and American Express provide jobs. Unemployment is very low.
- Fort Lauderdale is an affordable alternative to nearby Miami for waterfront properties. Investors can find deals on rental condos.
- Excellent amenities from white sand beaches to high end shopping and dining attract residents. This keeps sales prices and rents rising.
For investors who like coastal living at a discount to South Beach prices, Fort Lauderdale has a lot to offer. Strong migration trends combined with robust tourism provide a balanced real estate economy.
Jacksonville: Exciting Options For Buying On A Budget
Investors on a tight budget should look to Jacksonville for their real estate investment business. Prices are significantly lower than some of the cities on this list, but there’s also some severe rental potential that encourages cash flow for property owners.
According to Zillow, the median home price here is $308,300. The lower costs come despite a booming housing market, with home prices up more than 30.5% over the past year. Property prices are expected to fall further as the real estate market stabilizes.
Jacksonville is also an optimal location for short-term and long-term rentals. Rent growth was up 24% this quarter. This is a crucial advantage if you want to offer long-term rentals to Jacksonville residents.
Reasons that Jacksonville appeals to budget-conscious investors:
- One of the most affordable major metro housing markets in Florida, with median home prices around $300k.
- Strong job growth as financial companies and logistics/distribution firms move to the area. This expands the rental tenant pool.
- Ongoing revitalization efforts downtown with new retail, restaurants and residential. This raises property values.
- High rise condo construction boom adds leasable inventory for investors to purchase.
- Overall lower cost of living including property taxes attract new residents. Steady 1-2% annual population growth.
While lacking the glamor and global cachet of Miami, Jacksonville offers very reasonably priced real estate for buying and holding as rentals. Yield seeking landlords can acquire properties with positive cash flow.
Tampa: There Are Many Options For Different Properties
Tampa is one of the best areas for new investors for your real estate portfolio. The region is known for its historical growth. This means that the city is favorable for tourists and those who want to settle there, so it is a stable base for investment properties.
Research shows that Tampa ranks third on the list of best cities to move to. In the first two months of 2022, more than 9,000 people arrived in the region, compared to about 6,000 a year ago.
The median home price is $415,484. The area has seen phenomenal growth over the past year, with property prices increasing by over 34%, making it the ultimate destination for first-time investors who can expect their assets to appreciate significantly over time.
In the last quarter alone, rent growth has increased by almost 18%. Browse Tampa investment properties and find great deals for you.
Tampa advantages for real estate investing:
- One of the hottest housing markets in the country recently, with home prices up 34% year-over-year. Rapid appreciation benefits investors.
- Net domestic migration around 50,000 new residents annually. Tampa metro area now over 3 million population.
- Major employment hubs include MacDill Air Force Base, University of South Florida and Tampa International Airport.
- No state income tax and lower cost of living compared to other Florida hotspots appeals to new residents.
- Varied stock of property types from downtown high rises to suburban single family homes. Inventory at all price points.
Offering a more relaxed pace of living than Miami yet boasting better amenities than smaller cities inland, Tampa presents a happy medium. Strong economic and demographic trends fuel exceptional home price and rent growth.
Orlando Sub Markets: Attractive Real Estate Options
Orlando Sub Markets is the best real estate market for traditional investors and offers a variety of investment options. The Orlando Sub Markets are an excellent place for investors to get a great deal because average home prices are lower than other Florida markets.
Also, in addition to the continuous flow of tourists and expected growth in employment, one can get ongoing and profitable investments during the year. Rent growth was up 9% this quarter.
The average investment property was $212 per day or $2,970 per month in August 2022. Orlando Sub Markets is quite profitable for a large category of investors because Orlando Sub Markets is one of the vital entertainment centers of the country.
Local attractions draw millions of people from all over the world.
Benefits of Orlando‘s sub markets:
- Less expensive than downtown Orlando or Kissimmee near theme parks, allowing investors to find deals.
- Working class neighborhoods like Pine Hills offer affordable single family homes to rent to local residents.
- Markets like Altamonte Springs and Oviedo are seeing revitalization with new restaurants/retail. Property values rise.
- Healthy job growth as employers move to less costly suburbs. This expands the tenant pool.
- Ongoing home construction adds brand new inventory to purchase. Some communities still build condos.
While missing the glitz of Disney and Universal Studios, Orlando‘s suburbs present an affordable alternative with solid rental demand fundamentals. Budget-minded landlords can target local tenant markets.
Regions Of Tampa: Great Opportunity For Multifamily Homes
Regions of Tampa are one of the best areas for multifamily investors. This is due to several factors: job growth, rising rents, vacancy rates, and new housing construction.
As mentioned earlier, millennials are moving here for convenience. This contributed to an increase in the labor market by 2.3% last year. Future employment growth is forecast to reach 42.7% over the next decade, and the region shows no signs of slowing.
The figures show that rents rose by 18% this quarter. As the area develops, more families are looking to settle in, opening the door for multifamily investment properties. You can rent them for a short or long term as you wish.
More renters not only increase opportunities for construction and investment but also lead to higher rents.
Reasons Tampa‘s suburbs offer promising multifamily investments:
- Strong job growth in locations like Wesley Chapel as companies take advantage of lower costs and high quality workforce.
- Millennial homeownership lags national average, driving demand for apartments. Rents projected to rise 8% next year.
- Suburbs like Brandon seeing more condo and townhome construction geared at rental investors.
- Low vacancy rates around 5% indicate landlord favorable conditions with high occupancy.
- Future transit improvements like Bus Rapid Transit will improve accessibility and raise property values.
Offering shorter commutes and modern amenities at affordable price points, Tampa‘s periphery markets cater well to the rental needs of millennials and families. Cash flowing multifamily complexes can provide stable income streams to investors.
Conclusion
When you‘re looking to buy an investment property in Florida, numerous attractive markets exist across the state depending on your investing goals and budget. Areas like Miami and Fort Lauderdale allow tapping into robust tourism for short term rentals. Tampa and Orlando offer strong resident demand for traditional rentals while seeing exceptional home price growth. And places like Jacksonville provide affordable deals for value investors to achieve positive cash flow.
A qualified real estate agent can help you narrow down the ideal area and properties to match your investing style. They can guide you based on factors like expected returns, inventory availability and financing options. The Sunshine State remains a premier destination to invest in real estate for both short and long term strategies.