Investing in real estate in Florida can be highly lucrative, but choosing the right location is key. The Sunshine State offers diverse options for real estate investment, from major metros like Miami to up-and-coming secondary markets. When deciding where to buy investment property in Florida, key factors to consider include population and job growth, affordability, appreciation potential, and cash flow. Strong demand coupled with limited housing supply make Central Florida cities like Orlando and Tampa attractive for investment. Coastal markets like Jacksonville and Fort Lauderdale also offer opportunity. This article will explore the top places for real estate investment in Florida and provide tips for selecting investment property in these high-potential markets.
Orlando and Tampa – strong job and population growth fueling housing demand
The I-4 corridor connecting Tampa and Orlando is one of the premier regions for real estate investment in Florida. With theme parks like Disney World and Universal Studios, Orlando sees huge tourism. But the region also has a diverse economy, with aerospace, health sciences, and technology employers. Orlando ranked #2 on PwC’s 2022 Emerging Trends in Real Estate report, reflecting its strong housing demand. Meanwhile, the Tampa metro is adding over 50,000 new residents per year. The area has seen rapid job creation, especially in fields like IT and healthcare. With high in-migration and employment growth, limited housing inventory has pushed up prices. Focus on suburban areas near employment centers when looking for investment property.
Miami and South Florida – high appreciation but barriers to entry
The Miami metro is an internationally known luxury market that consistently ranks among the top US markets for home price growth. Foreign buyers, second home purchases, and lifestyle amenities make South Florida a prime destination. However, Miami real estate is very expensive, with a median home price over $560,000. Investment property values are high and all-cash offers are common. Look to secondary markets like West Palm Beach for lower buy-in. Focus on newly constructed condos and multifamily properties to benefit from ample tenant demand.
Jacksonville – affordable market with upside potential
While not as glitzy as South Florida, Jacksonville offers opportunity for cash flow focused investors. Home prices are relatively affordable and rents have risen sharply in recent years. Job growth has been steady, especially in sectors like financial services, healthcare, and transportation. Jacksonville’s large military presence also provides a stable tenant base. The metro’s population is growing as Northeasterners relocate for the warmer climate and cheaper cost of living. Jacksonville tends to be landlord-friendly, with better cap rates than many Florida markets.
Other promising markets – Cape Coral, Fort Myers, Pensacola
Other Florida metro areas to consider for investment include Cape Coral/Fort Myers and Pensacola. Located on the Gulf Coast, these cities draw retirees but also have solid job growth and amenities. Their housing markets are actively expanding, with inventory failing to keep up with demand. Price growth is well above national averages while remaining affordable compared to the state’s marquee markets. New construction and build-to-rent communities are popular investment targets. Conduct in-depth due diligence as some neighborhoods offer better fundamentals than others.
Orlando, Tampa, Miami, and Jacksonville are among the top locations for real estate investment in Florida due to their strong demographic and economic growth. Fast-growing secondary markets along the coasts also provide opportunity. Focus on properties that can generate recurring rental income along with upside from appreciation.