A favourite with relocators, retirees and holiday makers, property in Florida continues to offer some of the best rental returns in the US. Latest data from RealtyTrac pinpoints several locations in Florida as top for rental returns, safe havens for rental investment and perfect for the baby boomer market.
Among the places offering the highest rental returns is Pasco County, home to towns such as New Port Richey on the Gulf of Mexico coast and Odessa inland. According to RealtyTrac’s First Quarter 2015 Residential Rental Market Report, Pasco County ranks seventh best in the US for returns. The report estimates gross annual yield from rental properties in this area of Florida to be nearly 18 per cent.
Commenting on the results, RealtyTrac’s Vice President Daren Blomquist highlighted the three factors currently boosting rental returns in the US. These include the lowest levels of homeownership for the last two decades, new builds currently at subdued levels and low property prices. “There is still plenty of opportunity in the US housing market for single family rental investors,” he said.
Good Rental Potential for Baby Boomers
As well as locating the top 20 best returns from US rental property, the RealtyTrac report also focuses on several niche rental areas. Among these are areas catering for the baby boomer market. This generation, born between 1946 and 1964, represents an important market for property in the US since they make up 20 per cent of the total population, are at the peak of their careers earning high incomes, are looking towards retirement and safeguarding their finances through investment.
RealtyTrac has located regions where the proportion of baby boomers is even higher. In Charlotte County, baby boomers account for nearly 33 per cent of the population and their quota rose by a massive 42 per cent between 2007 and 2013. In Sarasota, they make up over 30 per cent of inhabitants, a 30 per cent rise from 2007 to 2013. As a result, locations within these two counties such as Englewood and Sarasota offer excellent potential for rental properties targeted at baby boomers.
Safe Haven for Residential Rentals
In its first quarterly report this year, RealtyTrac pinpoints 70 locations within the US where investors can find secure returns from residential returns. These so-called safe havens include Charlotte County. Property here in places such as Englewood and Port Charlotte are considered safe bets for residential rentals because annual gross yields exceed 10 per cent and the county’s unemployment rate lies below the national average. The jobless rate in Charlotte County currently stands at 5.1 per cent.
Source: RealtyTrac, Florida Realtors
