What are the best markets for investing in Florida real estate 2018?
The Florida housing market has been one of the most attractive and sought out markets in the US for the past few years.
This is mainly due to the relatively low prices of properties in Florida when compared with other well performing real estate markets nationwide.
According to Zillow, the average home price in Florida real estate 2018 has been $216,000, which is 7.3% higher than last year, and it is expected to continue rising slowly by another 2.5% by the end of this year.
However, even as the prices rise, the average home price in Florida remains very affordable and attractive for buyers, especially when compared with other cities such as Boston and New York.
But if you’re considering investing in Florida real estate 2018, then you’re probably wondering: Which city is the best market for investing?
This article will focus on 4 major cities in Florida and their real estate market performance and projections based on Mashvisor’s data for both long-term and short-term rentals.
Florida Real Estate 2018 – Orlando
Orlando is by far the most affordable city for buying an investment property on this list of the best markets for investing in Florida real estate 2018.
Here are our stats for Orlando’s market performance:
- Median Listing Price: $294,399
- Average Traditional Rental Income: $1,579
- Average Airbnb Rental Income: $362
- Average Traditional Cap Rate: 1.97%
- Average Airbnb Cap Rate: 0.72%
As you can notice, Airbnb and short-term rentals in Orlando are not the optimal real estate investment. This, however, does not mean that there aren’t some great options for investing in short-term rentals in some of Orlando’s neighborhoods.
As for the best performing neighborhood for investing within Orlando, Millenia seems to be performing exceptionally well:
- Median Listing Price: $115,000
- Average Traditional Rental Income: $1,078
- Average Airbnb Rental Income: $2,266
- Average Traditional Cap Rate: 2.22%
- Average Airbnb Cap Rate: 11.72%
- Average Airbnb Occupancy Rate: 55.64%
As you can see, Millenia is performing extremely well when it comes to short-term or Airbnb rentals in particular. With an average cap rate of 11.72%, investing in Airbnb rental properties in the neighborhood of Millenia in Orlando, Florida can be a very profitable investment.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
Florida Real Estate 2018 – Miami
Of course, if we were talking about Miami Beach, then it would definitely be the priciest city on this list. Miami, however, seems to be doing okay when it comes to prices, and it is more affordable than many other real estate markets in Florida.
Here are our stats for Miami’s market performance:
- Median Listing Price: $400,708
- Average Traditional Rental Income: $2,363
- Average Airbnb Rental Income: $2,774
- Average Traditional Cap Rate: 1.82%
- Average Airbnb Cap Rate: 3.11%
Looking at these stats, the Miami real estate market seems to be very balanced in its performance, with both traditional and Airbnb rentals performing moderately well.
As for the most affordable neighborhood for investing in Miami, and the one with the highest projected returns, you would have to look at Auburndale’s market stats:
- Median Listing Price: $330,000
- Average Traditional Rental Income: $1,775
- Average Airbnb Rental Income: $2,862
- Average Traditional Cap Rate: 2.44%
- Average Airbnb Cap Rate: 5.05%
- Average Airbnb Occupancy Rate: 48.89%
Continuing with the trend in Miami, Auburndale shows a balanced performance, with Airbnb rentals performing slightly better than traditional rentals.
Note: To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Florida Real Estate 2018 – Tampa
The second most affordable city on this list is Tampa. If you’re looking to invest in Florida real estate 2018, then you should probably consider the option of investing in Tampa, where the prices are affordable, and a few very well performing neighborhoods exist.
Here are our stats for Tampa’s market performance:
- Median Listing Price: $320,872
- Average Traditional Rental Income: $1,590
- Average Airbnb Rental Income: $661
- Average Traditional Cap Rate: 2.04%
- Average Airbnb Cap Rate: 1.17%
Similar to Orlando, however, it seems like in every market in Florida where the prices are low, short-term rentals perform poorly.
But also similar to Orlando, there are neighborhoods in Tampa where Airbnb properties seem to perform exceptionally well, such as Seminole Heights:
- Median Listing Price: $209,000
- Average Traditional Rental Income: $1,082
- Average Airbnb Rental Income: $2,187
- Average Traditional Cap Rate: 6.63%
- Average Airbnb Cap Rate: 1.61%
- Average Airbnb Occupancy Rate: 60.13%
As you can see, with the high cap rate and the very high occupancy rate for Airbnb rental properties, Seminole Heights is the best place for investing in short-term rentals in Tampa, and one of the best markets for investing in Florida real estate 2018 in general.
Related: The 6 Best Cities for Airbnb Investments
Florida Real Estate 2018 – Fort Lauderdale
The last and most expensive city on this list is Fort Lauderdale. Although Fort Lauderdale is the most expensive city on this list, it is still a very affordable market for investing in Florida real estate 2018.
Here are our stats for Fort Lauderdale’s market performance:
- Median Listing Price: $545,274
- Average Traditional Rental Income: $2,770
- Average Airbnb Rental Income: $1,798
- Average Traditional Cap Rate: 1.75%
- Average Airbnb Cap Rate: 1.56%
While it does seem like Airbnb rentals’ performance in Fort Lauderdale is average, or less than average when compared to long-term rentals, one of the best performing neighborhoods nationwide for investing in short-term rentals exists in this city.
That neighborhood is no other than Chula Vista, and here are our stats for that market’s performance:
- Median Listing Price: $297,500
- Average Traditional Rental Income: $1,484
- Average Airbnb Rental Income: $3,567
- Average Traditional Cap Rate: 2.04%
- Average Airbnb Cap Rate: 8.48%
- Average Airbnb Occupancy Rate: 46.86%
Keep in mind that these Airbnb rental income and Airbnb cap rate values are based on an average occupancy rate of 46.86%. So, just imagine how much more profitable these properties can be if you manage to get their occupancy rate to 60% or above.
Related: California is Emerging as the Best Place to Invest in Real Estate in the Years to Come
Bottom Line
Florida real estate 2018 seems to be very promising. With economic growth and a decreasing unemployment rate, the Florida real estate market seems to be heading in the right direction for investors and homeowners alike. If you’re looking to gain additional insights on the different cities and markets for Florida real estate 2018, make sure to use Mashvisor to obtain real estate analytics for each city and neighborhood and help to determine the best and most profitable investment properties and locations to invest in.
Note: To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
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