The Sunshine State is a very apt nickname for a place where an abundance of sunshine also spells infinite opportunities. Florida is the 3rd most populous state in the U.S., with 21.5 million residents. It also has the 4th largest GDP amongst the States.
State Economic Profile
Florida has been benefitting from a growing GDP since 20 years ago. Based on GDP or Gross Domestic Product, Florida ranks 10th amongst the States of the USA. This is a clear indication that Florida has produced more Goods and Services than the other 40 states in the country.
There are many other aspects why Florida is a good place for investments. We’ve summed up some of the reasons you should consider if you decide to take the plunge to invest in Florida.
- The Florida job market has been going up since 2021 with a 5.4% increase. The Florida job market has expanded more than five times the national average in the same period. In September alone, there were 84,500 jobs added to the roster.
- Florida has 24 international airports that handle more than 68 million passengers per year. These airports also cater to one of the biggest industries in the state, Tourism. There were more than 31 million visitors in the state in 2020, despite the limitations due to the pandemic.
- One of the variables for real estate investment success is population growth. Florida’s population grew by 14% to 15% since a decade ago, and it is ranked third in population amongst the states of the USA. Florida’s population is about 21.5 million as of 2020.
- Florida is home to forty public universities and community colleges. It is also home to about 30 private universities and colleges.
- Florida is also home to various industries of national prominence. Some of these are the Aerospace Industry, Tourism, Health Care, the Government, and Banking. It is also the location of the headquarters for national companies such as AutoNation, Office Depot, and Hertz.
These aspects indicate a robust and dynamic economy that brings opportunities for more development. The economy sustains an increasing population which in turn contributes more towards the economic dynamism of Florida. Opportunities in the real estate industry will only increase to cope with an ever-increasing population, increased tourism activity, and house the many students, members of the academe, and other personnel the education sector contributes.
Real Estate Related Indicators
Rent Prices and Rent Growth are two of the key variables in deciding whether or not to invest in a city. Fort Myers in Florida made it on the list because of its monthly rent price median of $2,359, which translates to a Rent to Price Ratio of 0.76%, noting that 1.00% is the ideal. Real Estate property prices in the city are affordable, with a median home price of $311,000.00.
The housing or real estate market in Florida shows that home prices have increased by 17% since 2020. Also, in the same article, a listed property lasts only twelve days in the market before being sold. The housing market in Florida is one of the hottest in the country now. There are only a handful of real estate properties for sale at any time, as evidenced by a low inventory of real estate properties that are for sale.
A growing job market in Florida may have influenced the increase in the cost of rent from 24% to 31% from last year. The rent increase may also be because there are few rental properties in the area. Of all the residences in the state, only about 34% are rental real estate properties. Thus if you want to be a real estate investor, there is still plenty of room to accommodate your investment.
What is in the Future?
Statistics and numbers point out projections of a bright future in the Florida Housing Market. Population Increase, Job Market, national Corporate Headquarters, Booming domestic tourism despite the pandemic and Covid-19. A post-Covid scenario will also usher in a new wave of international tourists who want to visit but did not make it due to COVid-19.
With its theme parks, accessible education sector, a long line of coastal areas and beaches, tourist spots, recreational venues, international conferences and sports, various shopping areas, and relatively forgiving weather, Florida is a potential market to establish your rental properties business. Real estate data, including rental income data, are also favorable to those who would like to venture into the business.
We did a little research and we’ve found that Florida’s best cities to buy rental property are the following:
- Orlando – The City has a vibrant housing market despite the property prices. Many residents prefer to rent rather than buy properties.
- Tampa – Population growth in Tampa presents a good market for rentals.
- Jacksonville – Many residents go to Jacksonville because of its suburban vibe, homes are relatively less expensive, and the cost of living is cheaper.
- Fort Myers – Population growth and affordable living make this city a good location for investing in property rentals. It is home to various local businesses that have been enjoying exceptional growth.
Our Final Say
Many economic and real estate indicators point to Florida as a leading frontier in real estate investments. The tourism and academic industries in Florida are potential markets for rental properties. Many domestic and international companies have headquarters in Florida. Many of their management and staff are also potential tenants on a rental.
GL&L Holdings has seen opportunities for investment in the various cities of Florida. Thus, we offer our services to you whenever you are ready to invest in the Sunshine State. For more information on how we can help you with your investments, do not hesitate to call us now at (832) 770-9415 or shoot us an email at info@gllholdings.com.
