Orlando and Tampa property counted among the top ten best investment opportunities in the US in the first quarter of this year. The two Florida cities ranked in fourth and ninth places on the back of high population growth and strong employment creation, as this latest BRIC Group news article explains.
The Best Markets Top Ten List for Real Estate Investing Q1 2016 is published jointly by HomeVestors and Local Market Monitor, and examines the property market in US metropolitan areas (MSA). The companies’ criteria for inclusion in the report looks at three key economic aspects.
Firstly, they examine population growth looking for above-average rates with increases coming from new residents who have moved to the MSA specifically to find a new job. The next criteria is the rate of job creation and to rank highly on the top ten, the job growth in the MSA must be at least 2 per cent (the current national rate is 1.9 per cent). And lastly, the report rates low unemployment as an indication of good property investment potential.
By taking this data, the report identifies MSAs with dual potential for property investment: markets with strong opportunities for rentals and markets where house prices are likely to increase steadily over the next few years.
Texas and Florida dominate list
At the top of the best MSA for US property investment between January and March this year is Dallas-Plano-Irving. The Texas stronghold continued with San Antonio in second place. Property in Texas is considered particularly good value because of the strong job creation in the state.
Also with two MSAs on the list was Florida. Orlando and Tampa property featured in fourth and ninth places respectively. “Good job growth is driving prices higher in our markets, mainly in business services,” said Ingo Winzer, president and founder of Local Market Monitor. He highlighted the tourism sector in Orlando as a particular engine behind employment creation in the MSA.
Both Orlando and Tampa have shown strong economic growth over the last year. In Orlando, unemployment stood at 4.2 per cent in February this year, well below the national and state averages, and the MSA created 45,700 jobs in the 12 months to February, the highest rate in Florida.
In Tampa, unemployment was slightly higher (4.9 per cent in February), but job creation in the Tampa-St Petersburg-Clearwater MSA almost mirrors that of Orlando. In addition, the area leads the state in opportunities for higher-wage jobs, creating potential for investment in more expensive property in Tampa.
Tampa and Orlando property up
Property in Orlando registered a strong upward tick in the year to February. Median sales prices went up by 12 per cent over the year to reach US$185,000. Inventory continues to be tight and in February, supply levels dropped to 4.6 months.
Tampa property followed a similar pattern, although at a higher level. The median price for a single family home property in Tampa went up by 16 per cent to US$180,000 in the year to February. Like Orlando, supply continued to fall and the inventory levels stood at below four months.
“Key markets for Florida property consistently feature on the lists for best investment potential,” said Dies Poppeliers, Managing Director at BRIC Group. “We expect this potential to continue throughout this year and beyond as Florida continues to report strong job creation and population growth.”
BRIC Group, an investment company specialising in global real estate opportunities, offers US real estate investments including turnkey properties in Florida, Houston property investments and land plots in Florida. BRIC Group is also developing The Coral resort, in Northeast Brazil, a luxury beachfront resort with land and villa investment opportunities. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.
Source: Local Market Monitor
