If you are a real estate investor, you've likely considered investing in a rental property here in the State of Florida. All eyes are on the sunshine state as rental property investments continue to look ever attractive. As residents from around the nation flock to Florida, rental rates continue to soar.
Florida is experiencing a trifecta of economic growth, low unemployment rate, and population growth, not to mention fantastic weather! That all sounds great, but if you are an out-of-state real estate investor, how do you choose the right market to purchase your rental property?
As a full-service property management company, we deal with and analyze rental property assets all day, every day. We are principally experienced in the single-family and multi-family rental market. We believe Florida's diverse economy offers the best investment opportunities in the country right now. We have done the research. In this article, you will learn statistics, relevant information, see examples, and our opinion of Florida's best cities for buying a rental property.
Our first and favorite real estate rental market is Orlando, Florida. People and businesses are moving to the greater Orlando area due to quality of life and work opportunities. According to Roofstock, "46% of housing units in Orlando are occupied by renters." This is an immense amount of the renter population, and real estate investors love it.
The rental market in the Greater Orlando area is on fire. If you located an investment property that fits your criteria, you could expect it to have multiple offers, offers over asking price, or sold in hours after being listed. The real estate market is Tight, and the prices are high, but this is not stopping real estate investors from scooping up rental property assets. According to the Orlando Regional Realtor Association, The Orlando area inventory is down 50% from 6,825 homes in February 2020 to 3,420 homes in February 2021. More families choose to rent rather than buy a home as they look for cheaper living costs.
Orlando Metro area statistics:
- The current metro area population of Orlando in 2021 is 2,002,000, a 1.93% increase from 2020, According to MacroTrends. - The average rental rate in Orlando, Florida, is $1,420/mth. - The median household income for Orlando area residents is $51,757. According to the United States Census Bureau. - According to Zillow, Orlando's average home price is $278,584.
2. Tampa
Tampa is a beautiful city in Florida to be invested in. According to Graystone Investment Group, "Tampa continues to rank as one of the best cities in the U.S. for real estate investing, with a booming economy and strong job growth, along with affordable investment properties featuring generous cash flow and equity growth."According to Roofstock, the population growth in Tampa was 1.7% last year and is projected to increase 3.3% annually over the next few years.
Tampa Metro area Statistics:
- The current metro area of Tampa is 2,911,000, a 1.18% increase from 2020. According to MacroTrends. - The average rental rate in Orlando, Florida, is $1,420/mth. - The Median household income for Tampa area residents is $54,599. According to Data USA. - Tampa's average home price is $261,314.
3. Jacksonville
Jacksonville, Florida, is a beautiful location to invest in real estate. It is a niche market that many real estate investors overlook. Jacksonville Business Journal expresses the real estate rental market is vital due to residents flocking to the area seeking a suburban lifestyle, cheaper and more affordable homes, and living.
4. Fort Myers
Fort Myers has made our list of best cities to buy a rental property because of the affordability and expected growth in years to come. According to The Walton Sun, "Cape Coral, Lehigh Acres, and Fort Myers stand out for strong growth in both their population and number of local businesses. All three cities have top-50 rates in these metrics out of the 500 total cities analyzed." The economy and real estate market are booming in the southwest and specifically Fort Myers.
_____________Content of this Video_____________ 0:00 Buying A Rental Property in FL Intro 1:07 #1 City to Buy a Rental: ORLANDO 2:12 #2 City to Buy a Rental: TAMPA 3:45 #3 City to Buy a Rental: Jacksonville 4:14 #4 City to Buy a Rental: Fort Myers 5:16 Why Invest in Florida?
