Since the initial COVID-19 outbreak in the United States (that started nearly three years ago), many people have flocked to the Sunshine State. Given its year-round warm climate, Florida provides a great opportunity to plan outdoor activities, while still being mindful of social distancing requirements.
But, as home prices – and mortgage rates – have inched higher in 2022, many potential home buyers in the southeast are being inched out of the market – and analysts are watching this trend very closely.
So, what does this mean for residential real estate investors who already own property in Florida?
It could lead to more individuals and families renting their homes in the area – at least initially – until prices come down or they are in a more secure financial position to buy at the higher price points.
Overall, the Florida housing market is strong – and it is predicted to remain so over the next five years. Therefore, this can also be an excellent time for Florida residential real estate investors to capitalize on the market. With that in mind, while investment property owners continue to collect rent, they could also continue to add to their equity, a seemingly win-win situation.
With high demand for rental property, though, you could find yourself working overtime showing homes and/or units, screening potential new tenants, and readying space for your next occupants.
If you would like to learn more about how an experienced, local Florida property management team can help you run your rental real estate business smoothly, give CFL Property Management a call or you reach us by email with any questions you may have by sending us a message. We look forward to meeting you.
Sources:
Florida Real Estate Forecast Next 5 Years: Will It Crash? By Marco Santarelli. October 26, 2022, Norada Real Estate Investments. https://www.noradarealestate.com/blog/florida-housing-market