Florida Housing Market: Where to Buy Long-Term Rentals

It’s the perfect time for real estate investors to make a move in the Florida housing market as market trends are currently in the buyer’s favor!

It’s no surprise hearing that the Florida real estate market is a good bet for owning a profitable rental property. There are so many factors which back this up. Low property prices coupled with high rental demand is every investor’s cash flow dream, but that’s not the only thing motivating buyers. Owning an investment property in the Florida housing market is kind of a no-brainer, and we’ll tell you exactly why. And, if you want to make the most out of your Florida long-term rental investment in 2019, you should know exactly which areas provide the highest return and are best suited for this investment rental strategy. Using Mashvisor’s investment property calculator, we will give you a list of the best places to invest in the Florida housing market.

Florida Housing Market Trends 2019

There are a number of real estate market trends supporting investments in the Florida housing market. Here’s a quick summary of what potential buyers should know.

1) Increasing Home Values

While it was facing a slowdown a couple of months ago, the market is starting to heat up again. Yes, the Florida housing market is known to experience some fluctuation when it comes to property price, but no matter the direction price trends are heading, investors can be confident in their rental property’s ability to maintain value in this location over the long term. According to Zillow, the current median property value of homes in the Florida housing market is $233,300. Florida real estate has appreciated at a rate of 4.7 percent over the past year and is predicted to increase another 1.8 percent within the next year.

2) Inventory Is Up

Real estate investors won’t have a hard time searching for Florida houses for sale as inventory is staying strong in many Florida markets. Yes, one of the reasons behind home value appreciation is an imbalance in inventory levels. Sometimes, when property values increase, it’s the result of high demand for a low supply of houses for sale. However, that isn’t the case in the Florida housing market. In 2019, housing inventory increased 6 percent for single family homes and 6.9 percent for condos and townhouses.

3) Strong Renter Demand

As the homeownership rate continues to decrease across the nation, demand for rental housing in the Florida real estate market is increasing. One might think that because the Florida housing market has good property prices statewide, people would rather own a home than rent. But, for many in the Florida housing market, renting out housing is the way to go. According to neighborhoodscout.com, renters in the Florida housing market make up almost 40 percent of the population.

Florida is known to be the dream spot for many retirees and this influx of people just looking to settle down definitely helps the rental market. The two major demographic groups making up the Florida population are the ’35 to 54′ age group (25.7 percent of the population) and the ’65 years and over’ age group (19.4 percent of the population). As retirees continue to flow into the market, owners of rental properties have no reason to worry about a scarcity in the renter pool. Even better news, retirees aren’t the only ones moving to Florida, job opportunities are drawing in young entrepreneurs as well.

4) Strong Economy

Noticeably one of the most impressive things about Florida is its low unemployment rate statewide. With unemployment at 3.9 percent since the beginning of 2019, Florida beats out the nation’s average of 4.2 percent. Job growth is one of the most important driving factors for a strong housing market; where there’s a strong economy, a strong housing market follows. The national average for job growth was at 1.8 percent, whereas many areas in the Florida housing market witnessed double that. The high rate of employment opportunities and job growth in many of Florida’s markets is a good sign of long-term success for real estate investments here.

5) Tax-Friendly State

Buyers can also take advantage of the many tax benefits that are available when investing in rental property in the Florida real estate market. The biggest one is the fact that Florida doesn’t collect personal income tax. Therefore, real estate investors can pay a lower effective tax rate on their investments. This point, in addition to low property taxes and insurance, can leave you satisfied with the high return on your cash flow properties.

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Search for My Investment Property

So now you have a general overview of the Florida housing market and you know why real estate investors have this as a top location for investment. Now, Florida is a big state and real estate market trends can differ from city to city. So if you want to succeed with a long-term rental property investment, you need more specific real estate data. For those of you wondering where to invest in the Florida housing market for your best chances at a successful investment, we’ve got you covered.

Where to Invest in Florida Long-Term Rentals in 2019

Below you can find a list of the top cities for traditional long-term rentals in the Florida housing market. These locations have been chosen based on key return on investment metrics which point investors in the direction of prospective profitable locations. In no specific order, here is a list of where to invest in real estate in Florida this year.

Nokomis – Sarasota County

Median Property Price: $717,544
Price per Square Foot: $306
Price to Rent Ratio: 12
Days on Market: 120
Monthly Traditional Rental Income: $4,996
Traditional Cash on Cash Return: 7%

Captiva – Lee County

Median Property Price: $1,324,097
Price per Square Foot: $699
Price to Rent Ratio: 12
Days on Market: 285
Monthly Traditional Rental Income: $8,934
Traditional Cash on Cash Return: 7%

Key West – Monroe County

Median Property Price: $1,114,099
Price per Square Foot: $724
Price to Rent Ratio: 18
Days on Market: 138
Monthly Traditional Rental Income: $5,310
Traditional Cash on Cash Return: 4%

Englewood – Sarasota County

Median Property Price: $393,967
Price per Square Foot: $217
Price to Rent Ratio: 13
Days on Market: 132
Monthly Traditional Rental Income: $2,459
Traditional Cash on Cash Return: 5%

Rotonda West – Charlotte County

Median Property Price: $273,832
Price per Square Foot: $153
Price to Rent Ratio: 8
Days on Market: 115
Monthly Traditional Rental Income: $2,781
Traditional Cash on Cash Return: 7%

Key Colony Beach – Monroe County

Median Property Price: $668,821
Price per Square Foot: $432
Price to Rent Ratio: 14
Days on Market: 26
Monthly Traditional Rental Income: $3,906
Traditional Cash on Cash Return: 6%

St Petersburg – Pinellas

Median Property Price: $357,030
Price per Square Foot: $221
Price to Rent Ratio: 15
Days on Market: 87
Monthly Traditional Rental Income: $1,976
Traditional Cash on Cash Return: 4%

It’s important to note that we’re not saying these are the only places where you can own a successful long-term rental in the Florida housing market, as the state is full of profitable cities. But these are just a couple to get you started in your search for Florida investment properties for sale. The above data is provided by Mashvisor’s investment property calculator. Do you want access to more data like this for both your long and short term rentals in any market in the nation? If yes, you’re just a click away. Start out your 14-day free trial with Mashvisor now.

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