Are you wondering where to invest in real estate in 2020? There are many lucrative markets to invest in. But, you should consider the ever-profitable and stable Florida real estate market! The Sunshine State will continue to shine brightly thanks to many of its local rental markets in 2020, specifically, the Fort Lauderdale real estate market. What is the Fort Lauderdale real estate market forecast 2020? Where are the best Fort Lauderdale neighborhoods for 2020? Keep reading to find out!
Fort Lauderdale Real Estate Market Trends and Forecast for 2020
Rental Property Investments Will Continue to Be Profitable
A staple of the Florida real estate market, and the Fort Lauderdale real estate market by extension, is profitability. According to Mashvisor’s investment property calculator, the average traditional and Airbnb rental income in Florida is $1,865 and $2,649, respectively. These figures are higher in the Fort Lauderdale housing market. The rental income averages for traditional and Airbnb Fort Lauderdale are $2,570 and $3,222, respectively.
Keep in mind that these numbers are merely averages. A Fort Lauderdale investment property can generate more in rental income profitability.
You’ll Find Relatively Affordable Investment Properties in Many Neighborhoods
The Florida housing market is known for its relatively affordable real estate. The national median property price is $312,800, while the median Florida property price, according to Mashvisor, is $439,807. The median Fort Lauderdale real estate investment price, however, is $654,910.
While this median property price is considerably more than the state median, the same cannot be said of the best Fort Lauderdale neighborhoods. All of the city’s 8 best neighborhoods (listed below) are below the state median price. Of these 8, 6 are even below the national median property price. Meaning, you’ll still find relatively affordable real estate investments in Fort Lauderdale in 2020- if you know where to search!
To learn how Mashvisor can help you find the most affordable rental properties in Fort Lauderdale, schedule a demo now.
It Will Be a Buyer’s Market
While the city’s median price is considerably costly, property prices are expected to decrease in the Fort Lauderdale real estate market in 2020. The Fort Lauderdale rental market is currently a buyer’s market, not a seller’s market, which is obviously beneficial for potential buyers in the market. This positive trend will persist in 2020.
A Strong Economy Will Persist
If you want to invest in Fort Lauderdale for long-term rental properties, then rest assured that the market is excellent for a traditional strategy. One of the many reasons this is the case is due to the city’s strong economy. Fort Lauderdale has an unemployment rate of 3.5%. This is below the US average of 3.9%, but slightly more than the state average of 3.3%. Future job growth in the Fort Lauderdale real estate market is also positive, as it is expected to be 38% over the next 10 years.
There Will Be High Demand for Traditional Rental Properties
Overall, the Fort Lauderdale real estate market is excellent for traditional investment. Aside from its booming economy, as mentioned previously, there are many reasons for its high traditional rental demand. For starters, 48 percent of the city’s residents live in a Fort Lauderdale rental property. The city is also the 9th best city in the country to retire. Fort Lauderdale also ranks as one of the best cities to live in, one of the healthiest cities, and one of the most diverse cities in the US.
Fort Lauderdale Airbnb Laws Won’t Restrict Investments
Another of the top Fort Lauderdale real estate market trends for 2020 is its Airbnb legalization. The city’s regulatory framework includes many rational laws Airbnb hosts must abide by. A 6% Broward County Tourist Development Tax and a 6% Florida Transient Rental Tax are some of the most notable Fort Lauderdale Airbnb regulations. Other laws include a short-term rental application and inspection.
Airbnb Fort Lauderdale Will Continue to See Success
Being a part of the wonderful Florida real estate market, it should be no surprise that Fort Lauderdale is primed for Airbnb success. Broward County hosted approximately 13 million tourists in 2017. The city is known for its sun, beaches, marinas, shopping malls, nightclubs, yachts, and much more. Airbnb hosts in the Fort Lauderdale real estate market will enjoy more of this success in 2020.
Best Fort Lauderdale Neighborhoods for 2020: Traditional Long-Term Rentals
So, where should real estate investors focus on searching for and buying Fort Lauderdale homes for sale? According to Mashvisor, these are the best neighborhoods for traditional long-term rentals:
Melrose Manors
Pricing
- Median Property Price: $219,343
- Price per Square Foot: $130
- Price-to-Rent Ratio: 11
Traditional Investing
- Rental Income: $1,644
- Cap Rate / Cash on Cash Return: 3.9%
Riverland
Pricing
- Median Property Price: $263,333
- Price per Square Foot: $211
- Price-to-Rent Ratio: 14
Traditional Investing
- Rental Income: $1,591
- Cap Rate / Cash on Cash Return: 3.8%
River Garden Sweeting Estate
Pricing
- Median Property Price: $184,815
- Price per Square Foot: $152
- Price-to-Rent Ratio: 12
Traditional Investing
- Rental Income: $1,305
- Cap Rate / Cash on Cash Return: 3.3%
Durrs Homeowners
Pricing
- Median Property Price: $212,930
- Price per Square Foot: $161
- Price-to-Rent Ratio: 12
Traditional Investing
- Rental Income: $1,475
- Cap Rate / Cash on Cash Return: 3.3%
Best Fort Lauderdale Neighborhoods for 2020: Airbnb Short-Term Rentals
What about Airbnb Fort Lauderdale? According to Mashvisor, these are the top neighborhoods for short-term rentals in the city:
Rock Island
Pricing
- Median Property Price: $236,763
- Price per Square Foot: $151
- Price-to-Rent Ratio: 13
Airbnb Investing
- Rental Income: $4,072
- Cap Rate / Cash on Cash Return: 10.5%
- Occupancy Rate: 43.6%
Palm Aire Village
Pricing
- Median Property Price: $196,639
- Price per Square Foot: $155
- Price-to-Rent Ratio: 13
Airbnb Investing
- Rental Income: $2,855
- Cap Rate / Cash on Cash Return: 8.2%
- Occupancy Rate: 57.1%
Harbour Inlet
Pricing
- Median Property Price: $387,769
- Price per Square Foot: $280
- Price-to-Rent Ratio: 12
Airbnb Investing
- Rental Income: $3,612
- Cap Rate / Cash on Cash Return: 8.2%
- Occupancy Rate: 61.6%
Riverland Village
Pricing
- Median Property Price: $315,125
- Price per Square Foot: $209
- Price-to-Rent Ratio: 14
Airbnb Investing
- Rental Income: $1,899
- Cap Rate / Cash on Cash Return: 8.1%
- Occupancy Rate: 66.1%
All in all, the Fort Lauderdale real estate market will be one of the top markets in Florida in 2020. To start searching for Fort Lauderdale homes for sale, CLICK HERE to start your 14-day FREE trial with Mashvisor!