Known as the Mediterranean of the U.S. by many, South Florida ranks high for property investment. Aside from being a top spot for holiday destinations, with long sunny days and year-round warm weather, many people are traveling to South Florida for long term stays, which makes it a hot spot for real estate investing. Read on to find out why.
Employment Opportunities Are Thriving
Employment rate affects the growth and stability of an economy and is key to creating demand for property among renters and buyers. Florida as a state has one of the lowest unemployment rates in the country, and continues to decrease into 2020 at 3.40% compared to 3.90% in 2018, with South Florida being a big reason for it.
In addition, South Florida is becoming a hub for corporate centers. As the state continues to attract people from around the country and world, they are bringing their work with them leading to huge corporate developments.
Not only do these corporate centers bring more employment opportunities, but they are bringing the people who manage them. As the headquarters of more corporations move to the area, so are the CEOs, COOs, and many of the other leaders.
The leaders of these corporations are the biggest money makers. Often times, many of these people are empty nesters, so they may only need a place for their family and friends to stay when they visit. This makes renting a perfect option for them.
All in all, employment opportunities abound in the area, which is what is drawing so many people to South Florida, allowing investors to secure properties that offer over 7% return on investment.
Affordable Coastal Cities
Coastal cities tend to be a favorite among seasonal rentals, snowbirds and retirees, as many offer a variety of outdoor activities like beach and golf. Whether renting or purchasing real estate, South Florida has been a long-time top destination for snowbirds and retirees and continues to be so.
Affordable coastal cities are a compelling factor in the decision making process for retirees and snowbirds. As more people come into the area, they will look for coastal cities to take in the beauty of the water and land that so many Southern Floridians love.
Diversity and Millennials
Diversity is a huge attraction to people nowadays, particularly millennials. Nearly fifty percent of the population is foreign born and speak over 100 languages. The melting pot of South Florida enriches it greatly offering many activities, events, restaurants, and cultural attractions that are educational and fun.
With South Florida expected to grow exponentially in the next five years, most of the people are either coming from the south – Latin America – or New York. Experts predict that between 2020 and 2021, Florida’s estimated population will grow by 324,025 people, and 314,977 the following year.
Many investors have taken advantage of diversity by purchasing real estate in neighborhoods where there is a high concentration of different ethnicities. People don’t only want the cultural experience, but they also want to immerse themselves in it by making it part of their lives.
Universities/Colleges
Florida is the fourth largest U.S. school district with five colleges & universities and three law schools. The attraction to the south is, of course, the sunny, warm weather. The other reason young adults want to come to Florida for school is that it has some of the best programs in the nation, especially for business and medical.
Real estate investors know how much of a gold mine university/college towns are for rentals. Most students want to live off-campus in an apartment or in a rental home with a few of their friends. It’s a popular choice among investors because of low vacancy rates. With most students using loans or their parents’ bank accounts to pay for rent, investors don’t have to worry about rent issues either. This is another advantage that investors love about investing in university/college towns.
Live, Work, Play Lifestyle
A concept that began years ago and has popularized amongst all age groups (especially millennials) – South Florida has become a mecca for live-work-play lifestyle. Live-work-play communities, also known as mixed use developments, offer the convenience of work opportunities, living space and entertainment options all without leaving the local community.
Many live-work-play communities have sprouted throughout South Florida in recent years and continue to pop up in cities and suburbs, like the new Metropica in Sunrise and in Dania Beach. Because of the many benefits live-work-play communities offer, people of all age groups (from baby boomers to millennials) love the convenience of avoiding high traffic, walking to work, amenity-rich facilities and sense of community.
Make South Florida Your Real Estate Investment Success
There’s no denying the benefits of South Florida investment property. It’s an obvious choice to consider when it comes to real estate investments. You can’t go wrong with the beauty of the area in attracting people and the economic benefits that go along with it. If you’re looking for places to invest in real estate, contact us now for more information on available South Florida investment property.