South Florida Real Estate is uniquely positioned for accelerated growth and alpha level investment returns due to the convergence of key economic, demographic & geographic factors. These attributes are creating unique conditions that are favorable for excellent short-term and long-term investment returns.
Success in property investment anywhere in the country comes from understanding the key indicators that impact property values, rental demand and the real estate market cycle. The intensity and combined (force multiplication) of these indicators in a regional market is critical for high investment returns to be realized.
For example, here are just a few key indicators South Florida uniquely possesses:
~ Positive migration (population growth) and a resulting increase in housing demand
~ Major infrastructure development related to business growth
~ Positive macroeconomic factors; such as State and County level employment levels
~ The business-friendliness of a State to attract relocating companies
~ Low to moderate pricing (compared to areas of the country with similar quality of life)
~ Ample supply of dated or distressed properties
~ Buildable land limited by geographic factors
~ High quality of life and livability indexes
The Fort Lauderdale, Broward and Palm Beach County markets deliver on the indicators above . . . and more. When a real estate market has a convergence of all key factors like South Florida does, there is increased stability and significant potential for accelerated property appreciation and a strong rental market.
Florida is a major player in attracting US citizens who are escaping colder and less business-friendly states. Florida is second only to Texas in capturing these people migrating within the US. We are proud members of this group ourselves. In December 2012 Restore 818 relocated from the Los Angeles market to Fort Lauderdale to establish ourselves in what we believe will be one of the strongest and most rapidly appreciating markets in the US over the next decade. There were four primary reasons for us to make a 2,500 mile relocation from one Coast to the other.
#1. MIGRATION California had become increasingly oppressive of businesses with burdensome regulations, taxes and over-all anti-business slant from the State Government. California is experiencing a continuing exodus of entrepreneurs and producers, inbound migration is primarily the opposite. This is not the case in Florida. In 2012 Florida was projected to surpass NY as the third most populous State by 2020. However, growth is so strong that Florida achieved the ranking of third most populous State in 2015five years ahead of projections. This inbound migration and population growth the strongest possible driver for rental demand and real estate appreciation.
#2. GROWING ECONOMY Florida’s economy has grown increasingly diverse over the past 20 years and continues to do so. With its’ business friendly environment and incentives for relocating companies Florida has become a magnet for business relocation. Once known as a retirement destination Florida’s employment base has become much more diverse. There are dramatic increases in the number of people relocating here during their working years because of an increased focus on quality of life. And zero personal income tax doesn’t hurt in attracting skilled individuals as well.
#3. LIMITED LAND In South Florida there is an extremely limited supply of land. The three counties making up South Florida (Miami-Dade, Broward and Palm Beach Counties) are all bordered by the Atlantic Ocean to the East and the Everglades to the West. Limited supply with steadily increasing demand due to positive migration provides a solid foundation for property appreciation and a strong rental market.
#4. FAVORABLE STATE LAWS Florida, and South Florida in particular, has many positive aspects directly related to a strong and strengthening real estate market over the next two decades. Unlike some States who have passed laws slowing foreclosures creating a false sense of market strength, Florida legislature has stayed out of the way and allowed the courts to truly clear the market and create a solid base for future strength. Plus; Florida laws are landlord friendly.
If you’re living in a State similar to California where it just doesn’t make sense to invest in real estate — whether it’s because of prices, laws slanted against landlords or the expectation of standard/average appreciation because of stagnant or declining population — the good thing is that Restore 818 is on the ground in South Florida to act on your behalf.
South Florida is comprised of the top three counties by population in the state of Florida. The three main counties that comprise South Florida — Miami-Dade, Broward, and Palm Beach Counties — rank 7th, 18th, and 28th respectively in the top 100 largest counties in the US. That ranking comes from a list of 3141 counties in the entire nation ranked by population.
Florida’s population is projected to increase by 6 million people for a total population of nearly 26 million by 2030. To put in perspective, that’s larger than the current population of Australia. The interesting point to note though is that more than half of the growth is projected to occur in just 10 counties. Number one and two on that list are Miami-Dade and Broward county.
This means that South Florida is expected to become even more densely populated in the future. While issues with congestion, water availability, education infrastructure and other public works are possible, there are numerous opportunities for a booming real estate market, expansion of business and increased capital investment. The larger concentration will also likely provide more opportunities for alternative transit solutions as the density grows in South Florida.
As mentioned above, one of our favorite factors positively impacting real estate appreciation is the limited availability of buildable land in South Florida. When you combine this unchangeable fact with Broward and Palm Beach counties leaders in capturing inbound migration, you have a recipe for an incredible real estate market unique in the nation.
Located in Broward County, Fort Lauderdale is nicknamed the “Venice of America” because of its expansive and intricate canal system. There are over 165 miles of boater-friendly canals to be exact, the most expansive in the US. The city is a major yachting center, with 42,000 resident yachts and 100 marinas and boatyards. And, it’s not just boaters that are attracted to Fort Lauderdale’s lifestyle and high quality of life.
Fort Lauderdale has a beautiful tropical climate, though it is located just above the true tropics. The city has over 7 miles of beautiful sand beaches. There’s little seasonal variation in temperature, with average monthly temperatures always above 66 °F (18.9 °C), which attracts new residents from around the country and around the world. Fort Lauderdale-Broward County was ranked #18th most populous county out of 3141 counties in the US . . . and is growing more rapidly than all other Counties other than Miami-Dade.
The greater Fort Lauderdale area has begun posting impressive gains in key industry sectors including capital investment, housing, transportation, employment, real estate and tourism. This area is seeing more business expansion, and the creation of new well-paying jobs for residents. Helping fuel growth are massive private and public sector projects that are pumping billions into the local economy, creating thousands of jobs, and sending a clear economic signal of strength and confidence in Fort Lauderdale’s future.
With business attraction on the upswing, Fort Lauderdale’s economy and real estate market continues to grow:
~ The unemployment rate for Florida consistently has been keeping a nice buffer of around 1% below the national average. Broward County unemployment has been consistently around .05% below the State average of Florida.
~ Fort Lauderdale now ranks as one of the country’s most improved housing markets with property values are on the rise. The city’s total taxable value was already up 1.5% to $23.7 billion in early 2015.
~ Fort Lauderdale ranks as one of the top 10 markets nationwide for the most improved housing turnarounds . . . and the Fort Lauderdale market continues to improve.
Another key factor that makes Fort Lauderdale attractive for investing in real estate is the unique way the City has divided its’ nearly 40 square miles of area. Fort Lauderdale has an official program for designating and recognizing neighborhoods. Under the Neighborhood Organization Recognition Program, more than 60 distinct neighborhoods have received official recognition from the city. An additional 25–30 neighborhoods exist without official recognition, although the city’s neighborhood map displays them as well. These names neighborhoods are key in creating a unique feel and pride of residence for residents, making Fort Lauderdale a very livable large city. (You can learn more facts about Fort Lauderdale here.)
As you can see South Florida, and in particular the Greater Fort Lauderdale area, holds tremendous investment potential. It’s an incredible advantage that South Florida holds with the convergence of more growth indicators than just about any other area of the Country. Does this stability, strong rental market and significant potential for accelerated property appreciation deserve your consideration as part of your property investment portfolio?
Learn more about your options investing in Real Estate in South Florida with Restore 818 Inc. — call us at 786-217-6733 or email invest@Restore818.com.