Is real estate a good investment in South Florida in 2022? Probably, you’ve already heard all the good things about South Florida, and as a savvy investor, you’re wondering if it’s worth it. Real estate is one of the best investment asset classes and it’s is currently booming in South Florida. When done right, you can earn thousands, if not millions of dollars in passive income.
But don’t just take our word for it. Below is a quick rundown of why you should invest in the South Florida real estate market come 2022.
- Readily Available Real Estate Market
- Favorable Business Environment
- Successful Trend in the Real Estate Market
- Favorable Climate
- State-of-the-art Recreational Facilities and Irresistible Fun activities
- World-Class Health Facilities
Reasons why you should invest in South Florida Real Estate by 2022
Is real estate a good investment, you ask? Above is the sneak peek view of why you should invest in South Florida real estate. In the rest of this guide, we walk you through more details to understand the South Florida real estate market. So, let’s get to it!
1. Readily Available Real Estate Market
South Florida is considered the fastest-growing region in Florida State. The region has a population of 6.1 million, compared to the overall State population of 21.6 million. South Florida constitutes 28.24% of the entire State population, and this figure comes from only three counties—Miami-Dade, Broward, and Palm Beach.
Investors make money by offering solutions. One of the greatest needs of the South Florida region is housing, considering the high population. That’s why investing in South Florida real estate is a worthy investment because there’s demand and a ready market.
Furthermore, population projections posit that the region will experience a 36% population increase in the next three decades. Investors, therefore, have the task of creating enough housing to cater to the present and future South Florida residents’ needs.
2. Favorable Business Environment
According to an article in the South Florida Business Journal, South Florida is considered the 12th largest economy in the United States. The region has a GDP of over $377 billion and has grown by over 59% over the last decade.
The region provides a favorable business environment, attracting many investors from all over the United States and worldwide. In addition, the State government supports trade and commerce by rewarding residents with a no-state income tax benefit.
The thriving business environment is an opportunity for real estate investors. Businesses starting in South Florida need offices, eateries, and other basic needs. Business owners staying in the region will also need accommodation—temporary or permanent.
That’s where real estate investors come in to save the day by developing both commercial and residential real estate properties. One can also buy already built commercial and residential properties to cater to the business community’s needs.
3. Successful Trend in the Real Estate Market
One question many investors ask is, what if it doesn’t work? The real estate market is particularly risky because it’s possible to invest in slow-moving properties that don’t attract interest.
The good news is, a lot of hard work has already gone into making South Florida the best spot for real estate investing. As a new investor, you, therefore, don’t have to second guess if real estate investing in South Florida is worth it or not.
The real estate market is tested and proven to be reliable. According to Zillow, the home value index for Miami-Dade is a little over $300,000 million and sees an annual increase of 9.5%. Broward and Palm Beach Counties see an annual home value increase of 10.4% and 13.1%, respectively.
Moreover, the rental market is thriving, and single-family homes are in high demand. The average monthly rent in Miami-Dade is $1,679, $2,079 in Broward, and $5,440 in Palm Beach. The high potential for rental market growth is also attributed to the high tourist population frequenting the region.
4. Favorable Climate
South Florida experiences a favorable climate than other regions in the United States. The three-county region is the only main region in the US with a tropical climate, explaining why it receives many visitors throughout the year.
The summer-like climate is favorable for business and related activities, including real estate investing. Therefore, you don’t have to stress over extreme winters negatively affecting your commercial and residential real estate investments.
5. State-of-the-art Recreational Facilities and Irresistible Fun activities
South Florida has some of the best recreational facilities. The region is also known for fun-filled activities attracting many people coming as permanent or temporary residents. One of the major events to watch in 2022 is the Miami Grand Prix—a formula one racing car competition.
The Blue Monster and Heron Creek Golf Clubs are the best in the region, attracting hundreds of thousands of golfers throughout the year. In addition, the South Beach, Pompano Beach, and the Florida Keys are world-class beaches located in South Florida, attracting local and foreign tourists.
The good news is, these recreational activities are an incredible opportunity for investors looking to invest in the real estate market in the region. A savvy investor can therefore develop residential properties for renting or long-term leasing or commercial properties like hotels.
6. World-Class Health Facilities
Access to health facilities is important for real estate investing to thrive because human health is a major concern. Therefore, areas with the best health facilities and equipment are more attractive and have a high potential for real estate investing.
The three-county South Florida region has some of the best health facilities with advanced medical equipment in the United States. The top health facilities serving residents in South Florida are Baptist Hospital of Miami and Cleveland Clinic Florida.
With 2022 only a few months away, it’s a good idea to start making your real estate investing moves. If you’re wondering whether to invest in South Florida real estate or not, the writing is already on the wall. Please don’t hesitate to reach out to us for any real estate investing inquiries.