FLORIDA TOPS TRENDS FOR US REAL ESTATE IN 2019

Florida Tops Trends for US Real Estate in 2019

With the new year on the horizon, property analysts are starting to look ahead to trends for the forthcoming year. A widespread survey for US real estate in 2019 reveals that Florida continues high on the investor radar. Orlando, Tampa and Jacksonville all rank at the top of the charts for investment potential.
 

The annual Emerging Trends in Real Estate , compiled by PWC and the Urban Land Institute (ULI), has just been released. Its findings place Florida at the top of trends for US real estate in 2019 both at national level and within the regional analysis.
 

Florida noteworthy story

According to the executive summary, “Florida is a noteworthy story in this year’s survey”. Orlando stands in fifth position overall for the US and the Tampa Bay metro area ranks in tenth position for real estate prospects nationally.
 

Factors contributing towards the “noteworthy story” include strong demographic growth, a friendly business climate and an attractive cost structure. This trio makes Florida one of the big markets to watch in US real estate in 2019.
 

Strong population growth

The survey goes on to look at these factors in the Florida real estate market in detail. It reports that seven of the largest property markets in Florida are forecast to see population growth that will be at least 85% higher than the national rate. These metros include Orlando and Jacksonville, both with demographic increases that are over double the US average. The Tampa population has seen strong growth recently due to new residents relocating to the area.
 

Orlando and Jacksonville have experienced a big increase in the number of young residents in the age bracket 25 and 44, the so-called Millennial generation. As well as new residents, all three metro areas are also creating employment at a pace well ahead of the national job creation rate.
 

Market strengths in Orlando

Emerging Trends in Real Estate also lists the market strengths for the areas to watch in US real estate in 2019. Those for Orlando include strong population and job creation growth, both factors that ensure demand for housing continues. Orlando property also represents “great value compared with other markets”.
 

Tourism, the main driver behind the Orlando economy, also features on the list of market strengths. Survey respondents report that it “provides a great employment base” as well as contributing to “an economically diverse market”.
 

Market strengths in Tampa

The reasons Tampa stands in tenth position for best US real estate in 2019 follow a similar pattern. As well as solid demographics and employment, the survey says the metro area is “increasingly recognised as a major market” and has a “highly valued and desirable quality of life”. In terms of property, Tampa represents a market that is “still relatively low-cost”.
 

Market strengths in Jacksonville

Although Jacksonville doesn’t feature in the top ten spots to watch for US real estate in 2019, it represents strong investment value within Florida. Its market strengths include the availability of capital for “opportunistic and value-add deals”. And buy-to-let property in Jacksonville offers higher yields than both Tampa and Orlando, according to the PWC and ULI survey.
 

Homebuilding prospects

Given the shortage of housing in the US, it’s unsurprising that Emerging Trends in Real Estate looks at homebuilding prospects . Florida again takes prime spots in the top ten. The survey ranks Tampa in second place, Orlando in fifth and Jacksonville in ninth. As the survey points out, “Florida markets have fully rebounded from the disruption caused by the global financial crisis”.
 

It concludes that the “outlook for real estate investment and development is good in nine of the markets, with excellent opportunities in four of the markets”. Yet again, the Sunshine State is one to watch in 2019.
 

(Source: PWC, ULI)

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