If you have been trying to buy property in Florida, you may be thinking that now is your opportunity. While COVID-19 has caused a huge amount of disruption to businesses and jobs, it has also created opportunities. Demand for housing is down, and so you’d be forgiven for assuming that prices have plummeted.
However, that is not the case in Florida. After the last recession, builders in Florida have been particularly cautious. Careful not to flood the market, they have kept new construction sparse. In fact, there is a statewide shortage of available property in Florida.
Nonetheless, that does not mean there are no opportunities for buying real estate in Florida. There are some underrated markets where you could find your next property, whether for yourself or to rent out to others.
When you do buy property, consider getting a home warranty. A warranty will take care of maintenance and repairs, saving you money in the long run and ensuring your house does not deteriorate. If you decide to include it, be sure the home warranty plan is actually available in Florida — some don’t cover every state.
The following areas in Florida have generally been underestimated in terms of real estate.
Clearwater, FL is a rapidly growing city. In fact, it came in at number 23 on Forbes’ 2018 list of fastest-growing cities. It is also considered one of the best markets right now for family homes. This is particularly true of single-family homes, so it might not be the right area for multigenerational families looking for a big property.
If you are looking to invest in property, whether to rent out to long term tenants or to use as an Airbnb, there are tons of opportunities in Clearwater. Median rental prices are above the US average. And because there is not a surplus of property throughout the state, you will not have too much trouble finding tenants. Of course, the COVID-19 crisis has made everything uncertain, but you should have few issues once this has passed.
Much of what applies to Clearwater applies to St. Petersburg as well. It is up there on the list of fastest-growing cities and is great for single-family homes. PwC has named it as a market to watch, and there are properties available for those looking.
If you are planning on renting it out, the good news is that there is a large year-on-year rent growth. Your passive income will only increase as your investment ages.
Another fast-growing city, Fort Lauderdale is an excellent property market at the moment. Not only that, but it also placed at 110 on the U.S. News’ list of best places to live. It is also a really good market for renting out your property, with a high year-on-year rent growth and plenty of demand.
Florida property prices are not likely to significantly drop due to COVID-19. However, there are properties available in some underrated markets that you can take advantage of.