Where to invest in Florida?
Almost fifteen years since the financial collapse of 2007, it could be argued that Florida has learned from past mistakes. At that time the common belief among investors and economists was that there were no defaulters in the real estate market because no one was going to risk becoming homeless. Time proved them wrong.
Before 2007 banks gave credit to anyone without background checks: behavior with past credits, fixed monthly income, if it really existed, ability to pay, if you had other bank obligations, etc. Seeing the amount of demand, the state’s builders set about building houses, apartments and condominiums without any control or stopping to see what was really going on.
Hollywood has not resisted the temptation to portray the excessive greed of those years. Films such as The Big Short, Margin Call, 99 Houses tell the crisis from different angles and the documentary Inside Job is excellent if you want to understand the functioning of global finance along with the causes of the collapse explained by some of its protagonists.
Although after the crisis we do not live in the ideal world, Florida has learned its lessons. No more credits are given left and right to anyone who asks for it or properties are built as if there were no finite number of homes. There are strict regulations to prevent another fall.
There are several factors that prove the strength of the state’s housing market. Although it is one of the favorite destinations for immigration, the trend has been accentuated since the pandemic with the boom of remote work while the number of jobs has increased like in no other state in the union. The good news is that prices are still affordable compared to California, Massachusetts or New York.
At this point many will ask themselves where should I invest? Before making that decision it is important to consider what you hope to obtain, that is, do you want to increase your wealth? Or do you seek to keep it safe from any eventuality? Regardless of the possible answers, the important thing is the location.
Each place in Florida has different characteristics that are adapted for each investor profile and the objective to be achieved. For example, Miami has some of the highest prices in the state, while Orlando offers lower prices with the added appeal of being one of the best-known tourist destinations in the USA, and even the world.
Since 2019 Citrus, Hernando, Pasco, Sarasota, Charlotte, Santa Rosa, Pensacola, Okaloosa, Walton counties have received the most new inhabitants. As a natural consequence, property values have increased by up to 35%. The sectors of Bay, Gulf, Calhoun, Liberty, Leon, Taylor, Gadsden, Jefferson Tallahassee, Dixie have had lower growth with figures close to 7%. The good news is that at no point has the value decreased.
Another important factor to consider is the counties’ historical migration rates and stability. In this case the largest populations such as Miami-Dade, Escambia, Martin, Bay, Broward, Okaloosa, Orange, Orlando and Monroe are the strongest counties in terms of population and migrant flow.
The last important factor to consider is the average age of the inhabitants. The vast majority of American pensioners move to Florida, who due to their life expectancy pressure the market with more units available for sale. In this sense, the counties with the highest average age of inhabitants are: Charlotte, Highlands, Collier, Sarasota, Citrus, Indian River and Marion.
So where should you buy property to invest in the state? The best options are the ZIP Codes with more population density, where there is a stable historical flow of migrants, the behavior of prices do not present much variation and where the population is relatively young. Cities like Miami, Orlando, Okaloosa are the most stable investments to either protect their heritage or increase it. In PFS Realty Group given our real estate activity we are focused on advising those people and families who are interested in making investments of this type in Miami, Orlando and South Florida, we have been working for more than twenty (20) years and for this, twenty (20) years that give us a specialty in what we do, If you want to explore real estate investment opportunities, we can schedule a meeting, face-to-face or virtual, to expand this information. Write to us at info@pfsrealty.kinsta.cloud and also visit our www.pfsblog.kinsta.cloud website to learn more about us.
