Why is Florida Property Investing so Popular?
Here are just a few of the many reasons why:
- Rapid Real Estate Appreciation Rates. (Number 1 State in the US)
- Population Growth - Supply & Demand - Fastest Growing State in the US.
- Huge Pent up Demand for Affordable Housing.
- Affordable Prices. (relatvely undervalued land - low construction costs)
- Baby Boomers Trends.
- Number 1 Retirement Destination.
- Year Round Fantastic Weather.
- 1,200 to 1,800 miles of coast line. (some of the best beachs in the world)
- Number 1 Tourist destination.
- International Appeal.
- Tremendous Business Growth. (Pro-Growth Government)
- Landlord Friendly State.
- No State Income Tax.
Florida's Real Estate Investment Market
Will the rising prices in the Florida real estate market continue, or will this bubble burst? During a time that has seen the largest piece of land being purchased in Florida since 1965 (which, by the way, was when Walt Disney bought 30,000 acres in what is now Orlando), most real estate investors are wondering how much longer the trend will continue. We are happy to say, we believe it will last for quite some time and this is why:
Savvy real estate moguls are purchasing large parcels of land not for the purpose of quickly cashing in on this booming market through the development of new homes and communities. What these developers have realized is that the expected growth in population for the state of Florida is estimated to be an increase of 35,000 new residents per month, with the trend estimated to continue for at least the next 30 years. As the population continues to grow over the next 30 years, these large parcels of land will only go up in value.
What makes this population growth even more impressive is that it is no longer low income retirees coming to Florida, but wealthy individuals looking to retire in the sunshine state (300 days a year of sun). As the first wave of baby boomers reach retirement age, we are seeing that they possess 70% of the nation's net worth. As this group of the population makes up a huge percentage of our country's population, about ½ of these people have no intent on staying in their current location, but are looking to live in places with a high level of "lifestyle" and warmer weather.
With this increase in money coming into Florida with the boomers, business opportunities and job growth won't be far behind. With this we see an increase in the numbers of 20 to 40 years olds looking to take advantage of this growth and demand for new goods and services.
One of the best ways to take advantage of this continued growth in Florida as a real estate investor is pre-construction Investing. By locating a pre-construction home or pre-construction duplex project in an area that is in high demand, or is projected to be within the next couple of years, you will have the opportunity to profit on the appreciate of your investment before it is even completed! Plus with the estimated growth over the next 30 years, this is not a limited time opportunity, but one that should last for at least the next 15 years.
Florida Median Home Sales Price Grows by 27%
|Florida Sales Report December 2005|
Existing Single Family Homes
| ||Realtor Home Sales||Median Home Sales Price|
|Statewide & Metropolitan Statistical Areas (MSAs)||Dec |
|Fort Myers, Cape Coral||872||1,084||+24%||$221,200||$322,300||+46%|
|Fort Pierce, Port St. Lucie||537||455||-15%||$216,700||$263,300||+22%|
|Fort Walton Beach||389||290||-25%||$197,500||$242,100||+23%|
|Lakeland, Winter Haven||556||465||-16%||$122,300||$170,200||+39%|
|Melbourne, Titusville, Palm Bay||662||462||-30%||$188,000||$234,400||+25%|
|Tampa, St. Petersburg, Clearwater||4,341||4,119||-5%||$170,500||$223,200||+31%|
|West Palm Beach, Boca Raton||1,171||743||-37%||$339,300||$408,200||+20%|
|Jacksonville: Data for Nassau County was not available.|
Tampa, St. Petersburg, Clearwater: Data for Hernando County was not available.
This information is based on a survey of MLS sales levels from Florida's Realtor boards/associations. MSAs are defined by the 2000 Census. Source: Florida Association of Realtors and the University od Florida Real Estate Research Center.