Florida real estate market - the investor’s paradise
Come 2022, Florida remains one of the hottest real estate markets in the country. From home value index, home price growth, rent index, and gross rent multiplier, everything looks promising for the real estate market in 2022. Bay To Gulf Holdings discusses the factors that will continue to keep Florida real estate an investment worth making.
Florida is an international tourist destination with stunning beaches, near-perfect weather, and world-class theme parks. Its economy is dynamic and diverse, with dozens of global business headquarters and a government that is both pro-business and pro-development.
Here are some of the factors that continue to boost the real estate market in Florida:
1. Population growth
The US Census statistics show that Florida’s population reached 21.5 million in 2020, up 14.6% in the past decade. The work-from-anywhere trend since the advent of pandemic accelerated the influx of new population, which is expected to continue in the coming years. The State of Florida expects 845 new residents per day through April 2025, representing an annual compound growth rate of 1.39%.
2. Job market
The pro-business and pro-development government rules make Florida one of the most ideal business locations. The job market in Florida continues to attract new high-wage jobs for workers who can compete on a global scale.
Job growth in Florida increased 5.4% between January and September 2021, compared to just 0.8% nationally. Jacksonville and Tampa are ranked by MoneyGeek as two of the best six cities for job seekers. Florida is also one of the top five states with the best business tax climates.
3. Real estate market
Statistics show that home sales and prices are rising, inventory is decreasing, and the number of buyers paying in cash for single-family homes has increased by almost half. Every metropolitan area in the state has experienced an increase in home prices by double-digits in the third quarter of 2021.
4. Strong renters’ market
With the new population gravitating towards the state, there has been a record hike in rents. The in-migration from the Northeast and West Coast by Florida’s thriving job market, lack of state income tax, and abundant sunshine have put the landlords in a very strong position to demand high rents.
34% of the houses in Florida are on rent indicating the growth in the rental market. The median household income in Florida is $59,227 and per capita income is $32,887. This bodes well for real estate investors in Florida.
5. Historic price changes & affordability
The latest Index shows that home prices in Florida have increased by more than 156% since October of 2000. According to the US News & World Report, Florida is ranked at #31 in affordability, meaning that it has one of the least affordable housing markets among all 50 states.
6. Mortgage rates and equity
The mortgage rates in 2021 have been historically low and even though the rates may go up slightly in 2022, they will still be in the 3-3.5% range. This low mortgage rate makes homes in Florida affordable for investors. Moreover, the statewide appreciation of home values will help buyers tap into their increased equity when they make purchases.
7. Quality of life
With a perfect work-life balance, great job opportunities, near-perfect weather, rich culture, and thriving recreational activities, Florida is a magnet for many people due to these reasons. US News & World Report ranks Florida as the 10th-best state in the country, including top-ten ratings for education, economy, and fiscal stability. Florida has more than 1,300 golf courses, hundreds of miles of white sand beaches, numerous outdoor recreation activities, stellar theme parks, international shopping venues, and a vast array of sporting events.
Why Bay to Gulf Holdings?
Bay to Gulf Holdings is the umbrella company that runs Rehab and Flip, and 911Houses.
Rehab and Flip specialize in helping investors looking for Florida real estate investment opportunities through its custom searches, rich network, and industry insights. Whereas 911Houses helps homeowners sell their homes for quick cash, no matter the condition of the house.
With its quick closings, quick rehab turns, quick flips, convenient move-outs, paperwork handling, and smooth sale and purchase mechanisms, Bay to Gulf Holdings makes real estate investment in Florida a breeze.
To sell a home for quick cash or invest in lucrative real estate, email investment.team@btgh.com or call at (813) 476-3199.
