Yet another ranking of the best markets for US property investment places Florida in a privileged position. The Sunshine State takes four of the top five positions and a total of six in the best ten making Florida one of the hottest places to invest in the US this year.
The 10 Hottest Real Estate Markets to watch in 2017 compiled by the property portal Trulia mirrors other predictions for this year. The Forbes Best Buy Cities: Where to buy housing 2017 also ranks Florida highly for property investment. In the Forbes listing, seven Florida metropolitan areas feature in the top ten.
Criteria for best markets for US property investment
The Trulia report based its findings on five factors. Firstly, it took high affordability into account. The rising price of property in the US has led to many would-be buyers being priced out of the market. This problem is particularly common in the largest cities. Florida, however, ranks well for affordability.
Secondly, Trulia looked at job growth rates, a key component in choosing an area for property investment. Employment is generally soaring in the US where the jobless rate stood at 4.8 per cent in January. 227,000 jobs were added in the first month of the year continuing the trend of the last few years. Job creation has been particularly strong in Florida, a state with the highest number of new employment opportunities in 2016.
Low vacancy rates, both in the property market and rentals, were another criteria used to determine the best markets for US property investment this year. Property inventory levels remain low throughout the country at less than 6 months generally.
Florida takes lion’s share
Given the criteria used by Trulia, it’s perhaps no surprise to discover that Florida metropolitan areas dominate the listing of the best markets for US property investment. In 2016, both economic growth and job creation in Florida outpaced the rates in the US generally. In addition, the property market in the Sunshine State experienced a strong year; December registered the 61st consecutive month of price rises.
At the top of the listing is Jacksonville, also a top contender in the Forbes ranking. For Trulia, this metropolitan area in the north of the state takes the number one position because of its job growth – 3.8 per cent in 2016.
In addition, Jacksonville has a very high ratio of inbound searches on the Trulia website indicating that a large number of people are looking to relocate to the area. One of the Jacksonville real estate agents quoted in the Trulia report said, “There are so many people moving here and very little leaving”.
Job creation key to Florida’s rankings
Next in Trulia’s list of best markets for US property investment is Cape Coral-Fort Myers. Job creation here too was strong in 2016 – the fourth highest in the country – and the area saw a sharp drop in vacancy rates last year.
In third place is Deltona-Daytona Beach, also a hot spot for jobs in Florida. Like Jacksonville, this metropolitan area also notched up a high ratio of inbound property searches from people set to move to this part of Florida.
Major new development also important
Ending the Florida quintet is Tampa-St Petersburg in fifth place. Tampa is no stranger to hot market lists – it ranks seventh in the Forbes listing – because of the area’s strong job creation and new opportunities.
Trulia also mentions two major developments currently underway in Tampa: The Heights and Vinik-Cascade. Between them, they have an investment of nearly US$3 billion and are both transforming downtown Tampa. Job opportunities also abound in Tampa in the education sector since both the University of South Florida and University of Tampa are located in the area.
And finally in tenth place is North Port-Sarasota-Bradenton. Highlights in this metropolitan area include its many amenities. Trulia cites its “full-time community” as another reason for its strong ranking.
With a total of five in the top ten, Florida certainly takes the lion’s share in this year’s best markets for US property investment. “If you’re thinking of buying in the US this year, you certainly should look at Florida,” says Dies Poppeliers, Managing Director of BRIC Group. “There’s every sign that the state will continue its strong economic growth and there are excellent opportunities for both capital appreciation and rental return.”
BRIC Group, an investment company specialising in global real estate opportunities, offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group is also developing The Coral resort, in Northeast Brazil, a luxury beachfront resort with land and villa investment opportunities. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.