Florida property features yet again in the listing for the best places in the US to invest in buy-to-let. No less than four Florida metros rank in the best ten. Two stand in the top trio for the third year in a row. The Sunshine State comes out top for buy-to-let investment because of a winning combination. Florida brings together
a growing population, strong job creation, a buoyant property market and high rental yields.
The latest survey by GoBankingRates on the best and worst places to own investment property reveals that Florida and Texas are the nation’s top destinations for buy-to-let. The report points out that the current situation on the US property market with rising prices and falling inventory is “bad news for homebuyers, but good news for investors”.
With the imbalanced supply in mind, GoBankingRates looked at 67 of the 100 largest cities in the US to find the ones with the best potential for buy-to-let. The survey analysed four factors in determining its listings: population growth, job creation, house price rises and rental yields. Florida property turns out to dominate the listings with four of the top ten positions.
Orlando property highest
Of the Florida quartet, Orlando takes the highest position. In second place behind only Arlington in Texas, the theme park capital of the US ticks all the boxes for buy-to-let investment potential. Orlando has featured first or second in the table for the last three years, proving the metro has consolidated opportunities for buy-to-let investment.
Orlando’s population grew by a massive 4.8%, one of the highest on the table. Employment is also buoyant with an increase of 3.5% in jobs over the last year. Prices for Orlando property have gone up by 10.7% – not the highest in the table but well above the national average. And importantly for the buy-to-let investor, rental yield is around 5.7% a year.
Jacksonville best for rental yield
Another regular in the GoBankingRates listings, Jacksonville presents an impressive array of figures for investors looking at Florida property. Both population and employment growth are strong and house prices are experiencing increases in excess of 10%.
But where Jacksonville buy-to-let property stands out is in the rental yield category. At 6.8% a year, it ranks as one of the highest in the listing. “Jacksonville is conducive to prospective property owners,” says the report.
Tampa Bay in top 10
Completing the four Florida property hotspots are the two large metro areas in Tampa Bay: Tampa itself and St Petersburg. Tampa sits in ninth position with particularly strong population growth – the number of inhabitants grew by 4.6% in the last year. Job creation remains strong and the metro regularly ranks as one of the drivers of employment in the state.
Tampa house prices have seen steep climbs – their rise of 13% is topped only by its next-door neighbour in the bay, St Petersburg. Rental yield is slightly lower than Orlando and Jacksonville, but it still stands at a healthy 5.1%.
Next-door St Petersburg enters the top ten this year, mainly because of its high price rises. This metro saw some of the biggest increases in Florida property – house prices went up by 14.6% in the last year. Rental yields in this metro from buy-to-let investment come in at around 5.6% annually.