Whether you are new to real estate investing or have an accomplished portfolio you wish to expand, now is the time to keep your eye on Southern Florida.
Not only does this region offer a diverse group of unique markets that attracts innovative companies, flourishing business communities, entrepreneurs, and millions of retirees, but the rental growth and demand for rental properties are very strong right now despite the ongoing pandemic.
Let’s take a look at 3 key areas that make real estate investing in South Florida a fantastic opportunity.
1. Rising Populations Due to Covid-19.
The three-county region has a population of 6.7 million which is projected to rise to 7.6 million by 2045 . While the population has slowed in Southern Florida over the past few years, new immigrants from high-tax states such as New York City are relocating, causing an annual growth in property sales.
2. A Rising Demand for Rental Properties
At the moment, much of South Florida, including the Orlando region, is in a seller’s market. Meaning, there are more buyers than active sellers, causing the housing market to expand at a great pace and the need for rental properties to dramatically increase.
For example, there is an ongoing development in Fort Lauderdale that is targeting new renters in the area who may not be able to afford higher monthly rents.
3. There is High Employment Security Due to Multinational Presence
The job market in South Florida is expected to grow over the next 5-7 years by at least 7.5% according to the Florida Department of Economic Security . Combine this with employment growth in the business sectors such as health, professional, and education, as well as, new openings for STEM jobs  and we see the potential for high employment security.
With well over 1,400 multinational corporations and high profile companies in South Florida, such as German grocer Aldi, Ecolab, and Hong Kong-based Techtronic Industries, economic security for job seekers have a positive outlook.
Why Invest in Orlando or Miami, Florida Real Estate As of 2020/2021?
If you are looking for reasons to invest in either the Orlando or Miami real estate markets, you don’t have to look far to see diverse opportunities.
Here is a brief snapshot of why you should invest in these regions in the coming year.
- Orlando’s rental market is the #1 place in South Florida to purchase a profitable rental property. This is because Orlando is a booming region for tourism and is a high-tech hub, which drives up job opportunities.
- There is an increase in demand for both residential and commercial property rentals, giving real estate investors better income/profit ratios as rental rates increase.
- Orlando will always benefit from migration, due to it being home to companies like Walt Disney, Lockheed Martin, and Mitsubishi-Hitachi Power Systems .
- Two-thirds of Miami residents are renters, which rivals that of New York City. This is due to limited housing supply, seasonal & temporary job markets, and Miami’s large body of colleges and universities (almost 40 in total) .
- Several neighborhoods in Miami have affordable rental rates, including Palmer Lake, Mays Garden, Coral Woods, and Dixie Heights Gardens. These affordable rental rates combined with a large pool of renters ensures that landlords have a strong return on investment .
All in all, South Florida offers a wide array of diverse investment opportunities for those of all budget types. Golden Beach and Coral Gables provide a luxury real estate market, while Hollywood and Hallandale Beach have affordable communities.
When you take this and the friendly tax codes, growing population, and job growth into account, South Florida becomes a haven for real estate investing.