The Orlando real estate market and Tampa real estate market are two of the hottest markets for real estate investors in the Florida real estate market.
Florida’s growing potential as a real estate market is due to the stable growth of its job market and low unemployment rate, attracting many people to start their business as real estate investors and make money. If you are confused between investing in Orlando real estate or Tampa real estate, this blog will give you the answer by analyzing both Orlando real estate and Tampa real estate to determine which market is best for your investment.
Orlando Real Estate Market
Orlando’s great weather all year-round, its natural attractions and most importantly, being home to the Walt Disney world resort make it one of the most touristic places in the US. In fact, Forbes reports that 60 million people visited the Orlando area in 2015 which by all means increases the demand over rental properties and thus increases the occupancy rate in the Orlando real estate market.
With a combined population of around 3.3 million residents, the Orlando real estate market is fueled by job seekers, startup businesses, and millennials who want to live in a nice and affordable place. Moreover, the booming economy of Orlando is yet another encouraging reason for real estate investors that eventually leads to a higher return on investment. These are good signs for real estate investors who are looking to invest in Orlando real estate. According to the Ten-X research quarterly report, Orlando is one of the hottest real estate markets for investing in single-family properties and it has been elevated to the nation’s top market position.
Related: Should You Invest in Vacation Home Rentals in Orlando?
Tampa Real Estate Market
Tampa real estate is highly ranked as one of the best markets for real estate investors due to its employment growth. According to Wallet Hub, Tampa is the third best city to find a job as big companies such as Amazon, Home Shopping Network, and Microsoft have large offices in the Tampa area, providing better opportunities to find jobs. On the other hand, population growth and housing demands are increasing as people move to the area to fill in jobs or work on construction projects. It is worth mentioning that Florida does not have a state income tax and the cost of living in the Tampa area is 3% lower than the national average, which makes it more appealing for people to start a real estate businesses, move or retire there. Many global investors view Tampa real estate and Florida real estate, in general, as profitable. In fact, foreign investors make up 70% of all condominium purchases in Tampa real estate and Florida real estate.
Investment Opportunities: Orlando Real Estate
Many states in the US housing market have great opportunities for different types of real estate investments but they do not equally have the same potential. For example, investing in coliving buildings can work successfully in places like New York City or San Francisco, but they might not work in South Carolina, for instance. How about investment opportunities in Orlando real estate? As the Orlando real estate market attracts long-term residents, millennials, and tourists, it has a great potential for different types of real estate investments and strategies.
From single-family houses to beach houses, Orlando real estate can be a great idea for beginner investors to invest in rental properties including Airbnb rentals and traditional rentals. On the other hand, the demand for renting and owning luxury houses is on the rise as visitors continue to flock to the city all year-round. Therefore, real estate investors are looking to purchase real estate properties in Orlando real estate in order to make money. It is worth mentioning that Orlando investors receive around 14.9% of overall returns and the value of properties in Orlando real estate is lower than the national average of the US housing market, making it one of the best places for real estate investors.
Click here to search for top real estate investments in Orlando, FL.
Investment Opportunities: Tampa Real Estate
Similar to Orlando real estate, Tampa real estate is yet another hot market for real estate investors due to its growing population, low unemployment, high rental income and low properties’ value. Short-term rental platforms, including Airbnb rentals, and traditional rentals in Tampa real estate are a great strategy for real estate investors due to the increase in population yearly. As Tampa’s economy is increasing, more people are moving to the area to fill in jobs and work on projects which eventually increases the leverage of real estate investors and creates better opportunities and profits and return on investment in short-term and long-term rentals. On the other hand, Tampa real estate provides different types of real estate properties to own and purchase, providing you with many real estate investment options and strategies.
For more information about the best real estate investment strategies in the real estate market, click here.
Best Places to Invest in Orlando Real Estate
Park Central
Median Property Price: $74,900
Airbnb Rental Income: $1,360
Airbnb Cash on Cash Return: 8.13%
Airbnb Cap Rate: 8.13%
Airbnb Occupancy Rate: 47.0%
Millenia
Median Property Price: $142,500
Airbnb Rental Income: $2,134
Airbnb Cash on Cash Return: 10.05%
Airbnb Cap Rate: 10.05%
Airbnb Occupancy Rate: 51.64%
Metro West
Median Property Price: $297,000
Airbnb Rental Income: $2,482
Airbnb Cash on Cash Return: 4.87%
Airbnb Cap Rate: 4.87%
Airbnb Occupancy Rate: 75.55%
Best Places to Invest in Tampa Real Estate
Seminole Heights
Median Property Price: $279,450
Airbnb Rental Income: $2,003
Airbnb Cash on Cash Return: 4.82%
Airbnb Cap Rate: 4.82%
Occupancy Rate: 48.08%
Tampa International Airport Area
Median Property Price: $264,900
Airbnb Rental Income: $1,541
Airbnb Cash on Cash Return: 1.51%
Airbnb Cap Rate: 1.51%
Occupancy Rate: 46.38%
Final Words
The booming tourism industry, growing economy and touristic areas coupled with affordable real estate properties make Orlando real estate and Tampa real estate hot markets for real estate investors. However, you need to conduct real estate market analysis before purchasing or investing in any market or location in the US housing market to guarantee a successful investment.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.