In 2019, Forbes listed Orlando, Jacksonville, and Fort Lauderdale, three Florida major cities, as some of the best cities where you can invest in real estate. Last year, Florida’s market was certainly great for investors, but what about this year? Is it still a smart decision to invest in the Florida real estate market? The answer is YES!
It is no wonder why Florida earned its place in the housing market. It is near the Gulf of Mexico, Alabama, Georgia, and the Atlantic Ocean. Also, it’s a hot destination for tourism, thanks to its tropical climate and premium parks. The economy in the Sunshine State is dynamic. Many businesses choose to have their headquarters in Florida, where the laws are pro-business.
Growth of Population in Florida
According to a news channel release in Tampa, Florida’s population is expected to grow by 906 new residents per day. As a result, it is now one of the fastest-growing states in the country.
Florida’s Population Statistics:
- In 2018, Florida was home to 21.3 million residents.
- Since 2010, Florida has grown by 13.3%. Today, it’s the third-largest state by population.
- From now till April 2024, the growth rate is expected to be 1.53% per year.
- If Florida kept growing at the same rate, it will be more populated than Australia in 2030.
- Five Florida counties (Miami-Dade, Broward, Hillsborough, Orange, and Palm Beach) are expected to have more than 1.6 million residents each in the next ten years.
- Tallahassee has one of the highest growth rates in Florida.
Florida’s Job Market:
There are many factors why Florida’s population keeps growing. Most importantly, it is the ideal location for business in the state. The government in Florida is proactive and knows how to attract jobs for excellent workers.
Florida’s Employment Statistics:
- The GDP of Florida exceeds $1 trillion. In the last ten years, it has grown by over 40 %.
- According to Forbes, Florida is the seventh-best state for business.
- According to Kiplinger, Florida has a robust economic outlook for 2020.
- The rate of unemployment is as low as 3.3%. The lowest of all time was 3.1% in March 2006.
- In August alone, 22,500 new jobs appeared in Florida.
- The growth in employment opportunities is even in all areas of the state and not centered in only one city. New jobs appear in all the major employment fields.
- According to the Florida Department of Economic Opportunity, software, healthcare, information, and business services are the fastest-growing jobs sectors.
- Florida’s economy is expected to exceed U.S. growth over the next few years. The labor force growth may reach 2.4% by the end of 2020.
- Aviation and aerospace, manufacturing, life sciences, information technology, defense, and homeland security, financial and professional services, logistics, and distribution are some of the major industries in Florida.
- 19 out of 500 Fortune companies are headquartered in Florida, including Tech Data, Office Depot, and NextEra Energy.
- Florida has received many top rankings for its pro-business climate: #2 best state for business, #4 lowest private-sector unionization rate. It is one of the best states for corporate tax advantages.
- The civilian labor force is almost 10.5 million workers.
- There are over 150 universities and colleges in Florida, including the University of Central Florida, University of Florida, and Florida International University. 40% percent of the population went to college.
- There are four busy airports in the state: Orlando International (MCO), Miami, Fort Lauderdale International (FLL), International (MIA), and Tampa International (TPA).
Real Estate Market
Florida’s housing market has always been strong in comparison to other states. It is expected that buying and renting demand will keep growing in Florida as the economy improves, and the population grows.
Real Estate Market Statistics:
- According to Zillow, Florida’s median home value is $238,600, ranked as a “very hot” housing market.
- The median listing price is $294,900, and the median selling price is $227,500.
- The average number of days that listings spend on the market is 83.
- Only 16.4% of listings in Florida have their price cut before the sale.
- The negative equity is 1.2% lower than the U.S. average.
- 1.4% of the homes in Florida have a delinquent mortgage vs. 1.1% nationally.
- Real estate market statistics vary from one area to another. Therefore it’s essential to research each city before deciding to invest.
People are moving in and out of Florida year-round, which makes the renter’s market dynamic. According to the Florida & Metro Economic Forecast, Florida will be in shortage of single-family houses even though the housing stats are good.
Renter’s Market Statistics:
- The median rent in Florida is $1,714, while the U.S. median is $1,588.
- Since 2011, rents have increased by nearly 30%.
- Rentals consist of 35% of the households in Florida.
- Homeownership rates in cities like Miami, Tampa, and Orlando have fallen below 50%.
- In Florida, the median monthly rent for a studio unit is $1,494, and for a four-bedroom house is $2,135.
- Every quarter, house prices change in Florida. The latest index shows that homes prices increased drastically since 1991. In the past five years alone, rates increased by 50%. In terms of affordability, Florida is ranked #35 among 50 states. Still, it’s more affordable than California, Oregon, and Hawaii.
Quality of Life
People choose to live and invest in Florida for several reasons. First, it offers a perfect balance between personal and professional life. You can have a great job while still being close to the beaches, restaurants, bars, and vibrant city life.
- Florida is one of the only seven states in the United States with no personal income tax.
- According to the U.S. News & World Report, Florida is the 13th-best state in the United States.
- The climate in Florida is near-perfect: 81 degrees in summer highs and 60 degrees in winter lows.
- Education in Florida is of high quality. All residents live within 50 miles of a college or a university.
- The cost of living in the Sunshine State is 2% lower than the national average.
- There are three NFL teams in Florida: Miami Dolphins, Jacksonville Jaguars, and Tampa Buccaneers, and two NBA teams: Miami Heat and Orlando Magic.
- There are more than 1200 golf courses, miles of white-sanded beaches, hundreds of outdoor activities, premium parks, world-class shopping centers, and more.