Real estate has long been one of Sarasota's three key industries alongside construction and tourism. If you're looking at real estate as an investment opportunity, good news: That trend won't be changing anytime soon. Yet, considering how it effects the local economy, it may now be a better investment than many realize.
A recent study by Local Market Monitor, a data company that tracks home prices and economic factors in more than 300 housing markets, has shown Florida to be an excellent place to invest in real estate, with Sarasota County as one of the prime examples. Of the top 20 places to invest in real estate across the United States, 7 of them are in the state of Florida, number 12 being the city of North Port. These "best buy cities" included areas with populations of at least 600,000 and exhibited characteristics that make for good investments, including healthy job growth, strong population growth, and anticipated home price appreciation.
Florida has historically attracted a number of retirees and snowbirds, but in recent years a growing number of younger, creative entrepreneurs have been planting seeds for the tech industry to change the historic regime by expanding the state's economic versatility. Given the recent technological advances in digital arts, social media, and mobile productivity, Florida is seeing a number of small start-ups and an influx of entrepreneurs looking to work in paradise rather than just retire here. However, with the volatility of the market in the wake of the recession, the millenials who are fueling this movement aren't quite ready to buy, opening up a grand opportunity for the long-game investor who also wants to see more vitality come to the Sarasota economy.
Due to the fact that many people cannot afford to purchase a home in the wake of the economic downturn and resulting foreclosures, currently a spree of people are looking to rent. Due to the rising market value of property in Sarasota, lack of affordable housing is unfortunately a popular topic in the papers. Nevertheless, snowbirds and retirees are still purchasing homes, and as they get nested, they need people to provide them with services. Between those in the service industry, digital creatives, and tech start-up entrepreneurs, there exists a ready-made market for the investor seeking to build a portfolio on the much-needed affordable housing market that will push Sarasota out of the slump caused by the national recession.
For investors looking to capitalize on demand, purchasing homes now while rates are low and providing more affordable housing would attract a more vibrant workforce, which would continue to increase property values -- thereby increasing the value of the investment while also contributing to the betterment and vibrancy of the community. Five years from now, the savvy investor will be selling property in a much different market, and those who see the demand to create that market will be very influential in the future of Sarasota. If you've been waiting for the right time to invest in Sarasota property, it's clearly now.
For more information about investment, rental, and/or vacation properties, get in touch with Julian directly via the Sarasota Property Finders Contact Page.
Sarasota Area Real Estate Specialist