If you’re on the lookout for outstanding real estate investment opportunities, the Florida housing market is the place to be. Florida is one of the hottest and most rewarded real estate markets in the country. Last year, the market performed exceptionally well and the same is expected for 2020. However, real estate investors know that limiting your focus down to one state just wouldn’t be enough to help you find great deals. Each city has its unique housing market which may or may not be great for buying rental property in Florida. To help you be one step closer to finding your next Florida real estate investment, keep reading! Below, you’ll find a list of the best places to invest in real estate in Florida in 2020 according to Mashvisor’s real estate data and predictive analytics.
To learn more about our real estate investment software and how we help investors in the US housing market, click here.
Florida Housing Market Trends 2020
But before we start counting the best cities in Florida for real estate investments, you’re probably thinking “why do investors still love buying property in Florida?” Well, there are a number of housing market trends that support Florida and make it one of the best states to invest in real estate. First of all, 3 out of the 10 best places to invest in real estate in 2020 according to the PwC’s Emerging Trends in Real Estate report are cities in the Sunshine State. Those top cities to invest in Florida real estate are Orlando, Tampa, and St. Petersburg. If you’re interested in reading more about each market and what made them be on top in 2020, we recommend reading the following:
Furthermore, the median property price for Florida homes for sale is $463,283 ($257 price/square foot) according to Mashvisor’s data and experts predict it will grow by only 1.8% in 2020. This small gain is mainly due to the multiple hurricanes that hit Florida in recent years. This tells real estate investors that while the Florida real estate market is still hot, it’s started to cool down recently. Meaning, once you’ve located the best places to buy rental property in Florida, you have the chance to find an affordable Florida investment property.
Related: How to Easily Find Affordable Houses for Sale for Real Estate Investment
Job Market Growth
When trying to identify the best states and cities to invest in real estate, one of the most fundamental factors to look at is the economy and job market. As for the Florida real estate market 2020, it is backed by a diverse and dynamic economy. The state has a reputation for being an ideal business location. The proactive, business-friendly government in Florida continues to attract new high-wage jobs for workers who can compete on a global scale. According to Forbes, job growth in Florida was 2.6% last year and the state created 22,500 new jobs in August alone in sectors such as tourism, agricultural, aerospace, and financial services.
The availability of jobs, along with Florida’s tax advantages and relatively low cost of living, has helped attract more people than most other states. Moreover, this job growth is spread evenly throughout the Sunshine State which explains why it ranks as the 7th best state for doing business nationwide. As for the unemployment rate in Florida, it’s only 3.3% and keeps ticking down. In return, this has contributed to an overall increase in the demand for housing – and more Florida real estate investment opportunities to meet this need.
Start looking for profitable rental properties for sale in the best places to invest in real estate in Florida right now using our search tools!
The previous trend leads to yet another reason why you should consider buying a Florida investment property. As a result of Florida continuously ranking as one of the top states to start or grow a business, there is an increasing number of young professionals flocking to the state in search of new jobs and career opportunities. And it’s not just young professionals who are attracted to living in Florida – the Sunshine State has something to offer to people of all ages. From students to the people in their golden age coming here to retire and enjoy the perfect weather. The Florida lifestyle, low cost of living, low property taxes and insurance, no state income tax, and exceptional health care – these are what bring many people to the Florida housing market.
Needless to say, this ongoing expansion in the population is only going to boost the existing demand for housing and long-term rental properties. The Florida rental market is actually very strong as the rate of rental households here keeps growing while homeownership rates have fallen below 50%. Therefore, if you are thinking about investing in Florida real estate, you should go and do it in 2020! According to Mashvisor’s data and analytics, Florida real estate investors can expect to earn $1,831 in traditional monthly rental income.
Related: How to Find the Best Rental Investment Markets
Best Places to Invest in Real Estate in Florida Traditional Rentals
Thinking of investing in traditional Florida income properties that generate positive cash flow and yield a good return on investment? Here are the cities in Florida where real estate investment opportunities are bound to keep getting warmer in 2020:
#1. Rotonda West
- Median Property Price: $302,438
- Price/Square Foot: $160
- Price to Rent Ratio: 9.4
- Monthly Traditional Rental Income: $2,654
- Traditional Cap Rate: 5.4%
#2. Cedar Key
- Median Property Price: $320,076
- Price/Square Foot: $251
- Price to Rent Ratio: 10
- Monthly Traditional Rental Income: $2,612
- Traditional Cap Rate: 5.1%
#3. Summerland Key
- Median Property Price: $969,787
- Price/Square Foot: $555
- Price to Rent Ratio: 16
- Monthly Traditional Rental Income: $5,048
- Traditional Cap Rate: 4.2%
- Median Property Price: $189,392
- Price/Square Foot: $111
- Price to Rent Ratio: 11.5
- Monthly Traditional Rental Income: $1,373
- Traditional Cap Rate: 3.6%
- Median Property Price: $504,324
- Price/Square Foot: $313
- Price to Rent Ratio: 12.6
- Monthly Traditional Rental Income: $3,333
- Traditional Cap Rate: 3.5%
Best Places to Invest in Real Estate in Florida Airbnb Rentals
Florida is a fast-growing vacation rental market seeing as it’s one of the most popular destinations for tourists worldwide. For many Florida real estate investors, this makes it a great location for investing in short-term rentals. Buying a vacation home and renting it out on Airbnb is actually the optimal rental strategy for many investors across the nation. But is it legal to invest in an Airbnb Florida rental property in 2020? Yes – for the most part, the Sunshine State is very Airbnb-friendly and Florida Legislature prohibits cities from regulating short-term rentals.
Related: 20 Cities with No Airbnb Legal Issues in 2020
According to Mashvisor’s data, the best places to invest in Florida real estate for Airbnb in 2020 are:
- Median Property Price: $563,927
- Price/Square Foot: $293
- Average Daily Rate: $196
- Monthly Airbnb Rental Income: $3,446
- Airbnb Occupancy Rate: 53%
- Airbnb Cap Rate: 8%
#2. Beverly Hills
- Median Property Price: $248,697
- Price/Square Foot: $119
- Average Daily Rate: $129
- Monthly Airbnb Rental Income: $2,681
- Airbnb Occupancy Rate: 50%
- Airbnb Cap Rate: 6.4%
- Median Property Price: $290,085
- Price/Square Foot: $144
- Average Daily Rate: $174
- Monthly Airbnb Rental Income: $3,371
- Airbnb Occupancy Rate: 63%
- Airbnb Cap Rate: 6.4%
- Median Property Price: $337,728
- Price/Square Foot: $137
- Average Daily Rate: $139
- Monthly Airbnb Rental Income: $3,865
- Airbnb Occupancy Rate: 68%
- Airbnb Cap Rate: 6.3%
#5. Key West
- Median Property Price: $1,079,868
- Price/Square Foot: $746
- Average Daily Rate: $592
- Monthly Airbnb Rental Income: $8,431
- Airbnb Occupancy Rate: 66%
- Airbnb Cap Rate: 5%
To start looking for and analyzing the best investment properties (both traditional and Airbnb) in your city and neighborhood of choice in the Florida housing market 2020, click here.
The Bottom Line
If you believe that you’re ready to start investing in rental properties, then you can’t go wrong with these best places to invest in real estate in Florida in 2020. It’s important to keep in mind, however, that even when you know where to buy a house in Florida, you still have to know how to find the best real estate deals there. It’s not always as easy as driving for dollars and other traditional property search methods. In 2020, the best way to find affordable and profitable income properties in any location is by using a number of real estate investment tools like the ones Mashvisor has to offer (learn more about them here).
So, if the time is right to start searching for homes for sale in the best places to invest in Florida real estate, this means it’s also a good time to get your hands on some great investment tools by joining Mashvisor. Start out your 7-day free trial with Mashvisor now to find the best deals in all of Florida’s most promising cities in 2020!