According to Forbes, Florida is an investor’s dream. The migration of snowbirds, retirees and foreign entrepreneurs cause continual shifts in home prices. The recession remains one of the main factors that ever affected the home prices in Florida. Home prices more than doubled before the recession, but then dropped to 60% afterward. Since then, home prices have begun a steep climb yet again.
Job growth is the most important factor that drives the demand for new housing, whether to buy or rent. The national average for job growth is just around 1.8% but there are cities in Florida where it is considerably higher in 2019:
- 4.7% in Orlando
- 4.2% in Crestview
- 3.9% in Cape Coral-Fort Myers
- 3.8% in Ocala
- 3.8% in Lakeland
- 3.7% in North Port-Bradenton
Investors recommend also looking at markets where home prices are higher than normal and higher than 20% of the income price. These markets tend to have high fluctuations, making it possible to pick up rehab houses when the market dips. When home prices shoot up, people may feel more inclined to rent and wait out the market, making it possible for investors to make higher incomes.
CNBC also chimes in to advise homebuyers to choose a home in The Crossings, because of its high livability factors. This may benefit investor buyers too. While homes in The Crossings cost less than homes in more hot spot locations in Florida, prices are trending upward. This is great news for investors that prefer to buy, hold and sell. At only 20 miles from Miami, it may also be ideal for investors who want to market to renters that do not mind a 40-minute commute.
Warm weather, blue skies and close proximity to the tropics are just some of the many reasons so many people flock to Florida. As more and more Americans migrate south to the sunbelt, investors may want to take advantage of the rush before it sends house prices out of feasible reach.
This article shares information on real estate in Florida and should not be used as legal or professional investment advice.