Florida is one of the fastest-growing real estate markets in the US. According to the US Census Bureau, Florida has a population of well over 21 million residents, and its number continues to rise. With such a massive number of people in Florida, it’s clear just how lucrative the real estate market can be there.

Based on data, real estate investment in Florida has shown the prospect of making much money there. With the median value of homes in Florida at around $400,000 approximately, investors can easily buy a property and get good cash on cash return. Keep reading to learn more about some lucrative places in Florida worth buying a property.

Top 5 Cities in Florida To Invest In Real Estate

There are many reasons why it’s good to invest in the property market in Florida. Along with the population growth, this state boasts a strong rental market, with high demand for long-term and short-term rentals. Furthermore, Florida offers some of the lowest property taxes in the country, a robust economy, and a low unemployment rate. Florida’s popularity as a tourist destination attracts many visitors each year, adding to its allure for real estate investors.

That said, investing in Florida real estate, though lucrative, should be approached with caution and careful consideration. As a real estate investor in Florida, there are several things you need to consider when buying a property. Out of the several things to consider, the neighborhood or location of the property is a key factor that can influence profitability.  Below are five standout locations to consider buying a property in Florida.

Palm Springs

First on our list of the best locations to invest in real estate in Florida is Palm Springs, a city where the American dream of having it all is still flourishing. It’s a unique location with lots of characters to attract prospects. And it doesn’t matter whether you’re buying a property in Palm Springs to flip or to rent it; you will still make profits.

Averagely, the median price of houses in Palm Springs is around $205,262 approximately. Or better still, the price per square foot in Palm Springs is around $195. Property in Palm Springs is a good investment, as the price-to-rent ratio is 12. The average monthly rental income you can generate from a traditional property in Palm Springs is around $1414. Overall, cash-on-cash return at Palm Springs is about 4.46%.

Margate

Margate is another excellent location to invest in real estate in Florida, and is part of the Miami Metropolitan area. Margate is located in Broward county, the 14th largest city in the county. The city has several infrastructures, including parks, recreational facilities, and so on, that will attract prospects to the town. Margate offers a range of amenities, including parks and recreational facilities, alongside a host of activities like swimming, sunbathing, and volleyball. Visitors can delve into the city’s rich history at the local Historical Museum, showcasing Margate’s transformation from a small fishing village to a bustling tourist destination. All these features attract a diverse pool of potential property buyers and renters.

Averagely, the median price of houses in Margate is around $225,054 approximately. Or, to put it in better perspective, a square foot in Margate is priced at about $187. Also, investing in rental properties in Margate is very profitable, considering its price-to-rental ratio of 12. And you can get an average monthly rental income of $1587 renting a traditional property in Margate. Overall, in Margate, you can get a cash-on-cash return of up to 4.39%.

Margate is a good choice if you’re looking for an affordable community with a lively atmosphere and plenty of nightlife. But what if you’re drawn to upscale neighborhoods? This brings us to another interesting option, away from our top five cities list: Miami Beach.

An example of deluxe real estate in this region is The Perigon Miami Beach. This intimate, exclusive condo project is nestled amidst beautiful beaches and charming shops, offering luxury living. So, if you also want to experience luxury living in a lavish apartment or condominium building, Perigon Miami Beach is the right location.  

Given the variety of options available, selecting the right investment can be daunting. Therefore, it might be helpful to engage with a reputable real estate firm like Chatburn Living that can provide the necessary tools and resources to help you locate the ideal property for investment.

Jensen Beach

Jensen Beach is not the most populous city in Florida. However, it is a strategic location that is booming regarding real estate. It’s a beautiful small coastal city with a high tourist attraction, especially for those looking to have a relaxing vacation. The beach and sparse suburban feel make Jensen Beach a lucrative real estate location.

Owning a property in Jensen Beach is relatively high, as the median property price is about $671,681. This figure puts the price of properties at Jensen Beach at about $407 per square foot. Also, the price-to-rent ratio of properties in Jensen Beach is at 20, which makes this location perfect for property flipping. If you are to own a property here, you will get a monthly rental income of about $2763. Overall, the cash-on-cash return in Jensen Beach is about 4.04%.

Orange Park

Generally, Florida is known to attract tourists from all over the world. Hence, if you want to invest in real estate for Airbnb, then Orange Park is one of the most lucrative cities to buy the property. Orange Park is a suburb of Jacksonville with an access road leading to everywhere you may want to go, and it also offers a good view of the beach.

An average property in Orange Park has a median price of $351,388. In other words, a square foot in Orange Park costs about $176. However, the occupancy rate is about 59%. The average price of Airbnb in Orange Park is about $263 per day. So, overall you can get a cash-on-cash return of 7.04% in Orange Park.

Ocala 

Ocala is another wonderful city for real estate investment located in central Florida. The city is quite vibrant with a mix of Victorian-era homes and is one of the most popular destinations tourists lodge when they visit Florida. And because of its strategic location, residents can quickly get anywhere in Florida from Ocala.

Owning a property in Ocala can be a little pricey, as the median property price is around $387,067. Essentially, a square foot of property in Ocala costs around $185. The occupancy rate of Airbnb in Ocala is around 60%. And with an average daily Airbnb rent of $139, you can bag cash on cash return of 5.24% from a property you own in Ocala doing Airbnb.

Conclusion

Overall, investing in Florida is a great deal. While properties are expensive in some locations, it’s pretty affordable in others. And the best part is that when you invest in real estate in Florida, you will surely make money off it.