Places to Invest in Real Estate in Florida 2022

Purchasing real estate properties for short-term or long-term investment can be a rewarding experience. But like any other business venture, you need to know how to play your cards right; otherwise, you’ll end up frustrated. Successful investors in the Sunshine State share one thing in common – they know where to find the best places to invest in real estate in Florida.

Although finding the right location is key to profitable real estate investing, you also need to put in a lot of hard work. You are expected to do a lot of research to know which property will give you your desired profit. Honing your marketing skills can be beneficial when you’re ready to put your property on the market for rentals.

If you are looking to invest in real estate and are ready to put your heart into it, now is a good time to start looking for the best places to invest in real estate in Florida.

The Florida real estate market flourished in 2021 and is one of the most profitable in the US. It is expected to continue driving Florida’s economy in 2022, despite the expected rise in prices and low inventory spurred on by the high demand for houses. We will guide you in choosing between traditional rental and Airbnb and assist you in looking for the best places to invest in real estate in Florida.

What Makes Florida an Attractive Investment Location

Before making a Florida real estate investment, let’s take a look at why real estate in Florida remains attractive and how the factors influence real estate trends in 2022.

Population Growth

According to the U.S. Census Bureau, Florida increased its population by 221,196 residents from July 1, 2020 to July 1, 2021, bringing the total to 21,781,128. State economists expect a daily average population growth of about 849 from April 1, 2021 to April 1, 2026. The growth would translate into more tenants and home buyers.

Bright Job Prospects

In September 2021, Florida registered a 5.4% growth in its labor force over the year, which is way higher than the nationwide increase of 0.8%. The state’s private-sector employment climbed 5.6% over the year, with leisure and hospitality gaining the most number of new jobs. The said figures indicate that a Florida real estate investment is a great way to earn extra and grow your wealth.

Shift in Lifestyle Preferences

The pandemic has changed the meaning of “home” for most people. Home is no longer just a place for sleeping and storing clothes and furniture. Being forced into spending more time at home has made people seriously think of where they want to stay. This new mindset has led many to relocate to Florida, known for its warm climate, natural sceneries, theme parks, and relaxed tax laws, increasing the demand for residential properties.

Thriving Real Estate Market

According to the Zillow home value index, a Florida house typically costs $342,000 as of end-2021, representing a 26.7% rise from the previous year. Despite the steep climb in price, the company’s list of top hottest real estate markets includes a number of cities from Florida, with Tampa topping the list.

Florida Realtors reported that as of November 2021, closed sales went up year-over-year (YOY). Single-family homes rose 4.3%, and the condominium/townhomes market posted a 5.4% improvement. The single-family home sale price last year was pegged at around $365,000, 19.6% higher than in 2020, while the condos’ and townhouses’ median sale prices went up by 19.9%, bringing it to a little over $273,000. Because of the higher sales figures, the Florida real estate market is experiencing low inventory, with single-family homes seeing a 31% decline and condos and townhomes plunging by almost 56%.

The above figures point to a bright prospect in real estate investment and a good time to find the best places to invest in real estate in Florida.

Best Places to Invest in Real Estate in Florida - Waterfront Homes

Look for Waterfront Homes in the Best Places to Invest in Real Estate in Florida in 2022

Best Places to Invest in Real Estate in Florida: Traditional Rental Property

The shift to work-from-anywhere and distance learning modes have afforded people to move to their preferred type of residence. This shift has led residents from other parts of the country to move to Florida, which provides more opportunities for traditional rental.

Traditional rental assures you of a fixed monthly income for the duration of the lease. The tenant will also be responsible for paying the utilities, so you need not worry about the monthly bills.

If you would like to spend more time for yourself, then traditional rental might be for you. Because the lease is long-term, you have a tenant in your property, whether it’s off-season or not, and you do not have to look for one frequently.

There are downsides to it, though. If you need to convert your property into cash, you cannot do so until the lease with your current tenant expires. If you are unlucky to have a tenant who does not care about maintaining the property, you could be spending so much on the property’s upkeep. Worse, you could have a neighborhood bully tenant, and dealing with them and alleviating the situation might pose a challenge.

Looking for the best rental market in Florida is no easy task, but there is hope. If you want to know where to find the best investment properties in Florida, Mashvisor’s data can easily provide you with the answer.

The data, coming from various reliable sources, is a result of Mashvisor’s detailed Florida real estate market analysis. The traditional cash on cash return used in our analysis was applied to develop the following list, showing you where to buy property in Florida.

1. Palm Springs, FL

Median Property Price: $205,262
Price per Square Foot: $195
Price to Rent Ratio: 12
Monthly Traditional Rental Income: $1,414
Traditional Cash on Cash Return: 4.46%

2. Margate, FL

Median Property Price: $225,054
Price per Square Foot: $187
Price to Rent Ratio: 12
Monthly Traditional Rental Income: $1,582
Traditional Cash on Cash Return: 4.39%

3. Jensen Beach, FL

Median Property Price: $671,681
Price per Square Foot: $407
Price to Rent Ratio: 20
Monthly Traditional Rental Income: $2,763
Traditional Cash on Cash Return: 4.04%

4. Royal Palm Beach, FL

Median Property Price: $410,605
Price per Square Foot: $231
Price to Rent Ratio: 15
Monthly Traditional Rental Income: $2.234
Traditional Cash on Cash Return: 3.79%

5. Coconut Creek, FL

Median Property Price: $295,225
Price per Square Foot: $210
Price to Rent Ratio: 13
Monthly Traditional Rental Income: $1,852
Traditional Cash on Cash Return: 3.75%

6. Palm Bay, FL

Median Property Price: $311,147
Price per Square Foot: $178
Price to Rent Ratio: 16
Monthly Traditional Rental Income: $1,589
Traditional Cash on Cash Return: 3.72%

7. Port Charlotte, FL

Median Property Price: $454,182
Price per Square Foot: $245
Price to Rent Ratio: 19
Monthly Traditional Rental Income: $1,952
Traditional Cash on Cash Return: 3.71%

8. Port St. Lucie, FL

Median Property Price: $427,165
Price per Square Foot: $216
Price to Rent Ratio: 18
Monthly Traditional Rental Income: $1,944
Traditional Cash on Cash Return: 3.28%

9. St. Johns, FL

Median Property Price: $438,027
Price per Square Foot: $232
Price to Rent Ratio: 17
Monthly Traditional Rental Income: $2,152
Traditional Cash on Cash Return: 3.07%

10. Wellington, FL

Median Property Price: $129,029
Price per Square Foot: $573
Price to Rent Ratio: 27
Monthly Traditional Rental Income: $3,942
Traditional Cash on Cash Return: 3.03%

Best Places to Invest in Real Estate in Florida: Airbnb Rental Property

Florida remains a popular location for Americans and foreigners alike. The state continues to draw vacationists like a magnet because of its tropical climate, scenic spots, and tourist attractions. Although the tourism industry in Florida went to a halt in 2020, it rebounded last year, attracting a total of 91.5 million visitors from January to September 2021, a 51.9% growth from the same period in 2020. The number of visitors from other parts of the US, which went up by almost 56% YOY, helped boost the state’s overall tourist arrivals. Overseas visitors also went up by around 31%.

Similarly, the job scene in Florida offers several opportunities for businesses, increasing business travels to the Sunshine State. International companies are now operating at several locations all over Florida, bringing in more than $80 billion for the state.

The influx of vacationists and transient business people provides plenty of opportunities to earn through Airbnb, a short-term rental investment strategy.

Airbnb offers higher income because you can charge double your traditional rental rate, especially if your property is in a prime vacation location. And the bonus? If your family needs a vacation place, you can use your rental property to save on the cost of paying for a hotel.

Are you interested in going the route of Airbnb? Check out the list below for some of the best places to invest in real estate in Florida, based on Mashvisor’s real estate data.

1. Orange Park, FL

Median Property Price: $351,388
Price per Square Foot: $176
Average Airbnb Daily Rate: $263
Monthly Airbnb Rental Income: $3,888
Airbnb Cash on Cash Return: 7.04%
Airbnb Occupancy Rate: 59%

2. Ocala, FL

Median Property Price: $387,067
Price per Square Foot: $185
Average Airbnb Daily Rate: $139
Monthly Airbnb Rental Income: $2,833
Airbnb Cash on Cash Return: 5.24%
Airbnb Occupancy Rate: 60%

3. Crystal River, FL

Median Property Price: $452,989
Price per Square Foot: $230
Average Airbnb Daily Rate: $182
Monthly Airbnb Rental Income: $3.326
Airbnb Cash on Cash Return: 4.84%
Airbnb Occupancy Rate: 57%

4. Sebastian, FL

Median Property Price: $411,279
Price per Square Foot: $321.16
Average Airbnb Daily Rate: $166
Monthly Airbnb Rental Income: $2,996
Airbnb Cash on Cash Return: 4.83%
Airbnb Occupancy Rate: 56%

5. Miami Gardens, FL

Median Property Price: $323,657
Price per Square Foot: $230
Average Airbnb Daily Rate: $239
Monthly Airbnb Rental Income: $2,741
Airbnb Cash on Cash Return: 4.17%
Airbnb Occupancy Rate: 53%

6. Melbourne, FL

Median Property Price: $431,307
Price per Square Foot: $229
Average Airbnb Daily Rate: $164
Monthly Airbnb Rental Income: $2,886
Airbnb Cash on Cash Return: 4.11%
Airbnb Occupancy Rate: 52%

7. Interlachen, FL

Median Property Price: $235,967
Price per Square Foot: $168
Average Airbnb Daily Rate: $190
Monthly Airbnb Rental Income: $1,842
Airbnb Cash on Cash Return: 4.06%
Airbnb Occupancy Rate: 48%

8. Ruskin, FL

Median Property Price: $397,319
Price per Square Foot: $196
Average Airbnb Daily Rate: $151
Monthly Airbnb Rental Income: $2,671
Airbnb Cash on Cash Return: 3.95%
Airbnb Occupancy Rate: 49%

9. Mount Dora, FL

Median Property Price: $456,156
Price per Square Foot: $240
Average Airbnb Daily Rate: $154
Monthly Airbnb Rental Income: $2,871
Airbnb Cash on Cash Return: 3.16%
Airbnb Occupancy Rate: 54%

10. Orlando, FL

Median Property Price: $426,921
Price per Square Foot: $256
Average Airbnb Daily Rate: $122
Monthly Airbnb Rental Income: $2,219
Airbnb Cash on Cash Return: 1.53%
Airbnb Occupancy Rate: 49%

Conclusion

The Florida housing market rebounded significantly in 2021, seeing a substantial increase in home sales. Economic analysts are saying that, despite the implementation of hawkish policies that are expected to push up property prices, real estate in Florida remains a profitable investment.

However, you need to arm yourself with the right investment tools to find the best places to invest in real estate in Florida. Whether you are looking for Florida investment properties for sale or the best place to buy a rental property in the state, Mashvisor’s real estate market analysis and investment property analysis will help you get there.

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20 Best Places to Invest in Real Estate in Florida in 2022