According to multiple sources like Forbes and Money Crashers, Florida’s real estate market keeps being one of the best states for rental property investment in 2021. Those sources analyzed multiple real estate variables like home value index, gross rent multiplier, home price growth. Also, other interesting key points make the Florida real estate market keep booming like low COVID-19 case counts, awesome remote working scene, no state income tax, and a relatively stable political scene.
In this way, the Florida real estate market boom has all the signs that it will stay for a time. Meanwhile, other famous metropolises like San Francisco and Manhattan may keep struggling with the possibility of its tanking.
Therefore, Florida’s real estate market observed a record low at the end of 2020. At the end of 2020 there were 9,495 homes on the market while, at the end of 2015, there were 20,646. That suggests a probable scarcity in the next few years.
Comparison of Rental Investing Data Points
First of all, it’s important to remember that all rental properties are, in the majority of cases, long-term investments. In this way, it is important to evaluate factors like the city’s growth, home value index, median age, popular growth, and many others. It’s also important to highlight that those key data points’ values depend on real estate companies like Zillow and CoreLogic.
Home Value Index: comprehend the average home value.
Projected One-Year Home Price Growth: This is the projected increase, in percentage, in home values over the next year.
Rent Index: This is an estimation of the prices of renting houses.
Gross Rent Multiplier: It is the home price divided by annual rent. For example, if a home price is $ 240,00 and the annual rent is $ 18,000 the gross rent multiplier is 13.3.
Unemployment Rate: It is the percentage of unemployed people. The unemployment rate offers a good insight into a strong job market and, in this way, if the residents can afford to spend on housing.
YoY Rent Grow: This is the percentage increase in rent over the last year.
YoY Job Grow Rate: This is the percentage increase in the number of jobs over the past year.
YoY Home Price Growth: This is the increase, in percentage, in home values over the last year.
Median Age: The median age indicates economic potential. Usually, the younger the media age, the greater the economic potential.
Population Growth 2010 to 2018: The percentage increase in the past year may be used to suggest the economic potential.
Table 1: Comparison of data points in Florida real estate Market
|
City (State) |
Orlando (FL) |
Tampa (FL) |
Jacksonville (FL) |
|
Home Value Index |
$ 238,900 |
$ 213,800 |
$ 214,100 |
|
Projected One-Year Home Price Growth |
3.4 % |
2.1 % |
4.0 % |
|
Rent Index |
$ 1,559 |
$ 1,470 |
$ 1,409 |
|
Gross Rent Multiplier |
12.77 |
12.12 |
12.66 |
|
Unemployment Rate |
2.7 % |
2.9 % |
2.8 % |
|
Median Age |
33.3 |
35.6 |
35.8 |
|
Population Growth (2010 – 2018) |
19.90 % |
17.03 % |
9.99 % |
|
YoY Rent Grow |
6.78 % |
4.85 % |
5.28 % |
|
YoY Job Growth Rate |
3.46 % |
1.78 % |
1.66 % |
|
YoY Home Price Growth |
7.5 % |
5.7 % |
8.0 % |
In Conclusion
As we understand to observe there is no single metric or perspective that makes one city in Florida better than another. All those three Florida cities point to good places for Florida real estate market investing. Also, there exist many other metrics that may be used for analyzing real estate marketing investing such crime and vacancy rates.
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