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15 Best Places To Invest in Real Estate in Florida 2022 & 2023

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No state has enjoyed such a surge in demand for housing over the last decade as Florida. And with more growth ahead, many experts are picking Florida as one of the best states to invest in real estate in 2023.

Not only is Florida one of those states that charges its residents no personal income tax, but it also has an incredibly low property tax rate: 0.83%. That’s 0.3% lower than the average property tax rate across the country (1.07%). If you’re looking for a place to invest that offers sustainable returns on investment, then read this article to the end.

Based on data from real estate companies including Redfin and Mashvisor, as well as our own data, we’ll show you some of the best places to invest in real estate in Florida right now.

Best Cities in Florida Quick Links

Is Buying Real Estate in Florida a Good Investment?

We wouldn’t be writing an article about the best places to buy real estate in Florida if the answer wasn’t a resounding YES. Florida is definitely a top-rated place to invest in real estate. With a GDP of $1.2 trillion, Florida has a lot to offer. A year-round tourist destination with world-class theme parks. It is bordered by the Gulf of Mexico, the Atlantic Ocean, Alabama, and Georgia.

A dynamic and diverse economy with dozens of global business headquarters enhancing the growth of the job market and a government that is both pro-business and pro-development. Many healthcare companies and universities are located in this state.

The state’s economic strength makes it an excellent place to invest. But like any other investment, there is always a certain amount of risk. Proper research and strategy will ensure a worthwhile return on investment in real estate in Florida.

What Makes Florida a Great Place to Invest in Real Estate?

There are a variety of reasons we believe Florida is one of the best places to invest in real estate today. Here are some of the top reasons why you should consider investing here:

1. Lots of people are moving here

Florida’s population grew by 14.6% ( +2.7 million new residents) compared to one decade earlier. Though Florida is the third most populous state in the U.S. with an estimated 22.3 million residents, about 808 new residents per day are expected to move into the Sunshine State in the next five years.

2. Job growth

The sunshine state is a gold mine for job seekers. Florida has a GDP of more than $1.2 trillion, and over the past 10 years, it has increased by 62%. Job growth in Florida increased 5.4% between January and September 2021, compared to just 0.8% nationally.

Four cities in Florida – Orlando, North Port, Jacksonville and Tampa – are ranked by MoneyGeek as some of the best cities for job seekers in 2022. Aviation and aerospace, life sciences, manufacturing, defense and homeland security, information technology, as well as professional services are the major industries in Florida.

Fortune 500 companies located in Florida include Tech Data, Publix Super Markets, Lennar (the largest home builder in the U.S.), CSX (the second largest railroad company), Office Depot (the largest office supply retailer), NextEra Energy (the largest owner of solar power plants), Darden Restaurants (the largest full-service restaurant chain in America).

3. Renters market

Real estate investors who have an investment in Florida can testify to the superb rental market in Florida. As of June 2022, the median home value in Florida is $397,280 according to Zillow.

Compared to last year’s price the median home value increased by 34.3% and over the past five years, home values increased by over 80%. If one of your goals for investing in real estate in Florida is profiting from home appreciation, most places in Florida still offer double digit home appreciation rates.

4. Low cost of living, High quality of life

Even though Florida is one of the most popular vacations and retirement destinations, it still offers a low cost of living. A ranking released by the U.S. News & World Report on the affordability and the overall cost of living of the 50 states in the United States.

Though Florida ranked #25 for cost of living, which makes it more affordable than 25 other states in the US. But in terms of housing affordability, Florida ranks low as one of the places where housing is least affordable. Yet, the quality of life in Florida is unmatched, so it is no surprise it attracts plenty of tourists. The location of Florida makes it a perfect place for those who want to enjoy outdoor sports, pristine beaches, popular theme parks, and exotic animals.

5. Home price appreciation

In the last 10 years, home values in Florida have appreciated at the rate of 153.24%, that is, 9.74% per year according to Neighborhood Scout. Florida’s increasing property values- which show no signs of declining- demonstrate the growing demand for Florida real estate. Florida is experiencing an influx of new residents, which is driving up demand for properties.

Today’s Best Places To Invest in Real Estate in Florida

Florida is one of the best places to invest in real estate. The Sunshine State has a lot going for it when it comes to buying property, and we’re not just talking about the weather. We’ve compiled a list of our favorite spots in the state to put your money down on a piece of Florida real estate.

1. Palm Bay, Florida

We believe that the very best place to invest in real estate in Florida is Palm Bay. A city with a lot of potential and opportunity, Palm Bay is located between Orlando and Miami, which is why a lot of millennials find this place attractive. It has many beautiful places where you can enjoy yourself, relax or explore nature.

The city has a population of 119,760 residents, which is growing annually at the rate of 1.36%. In recent years, Palm Bay has become a prime location for affordable single-family rentals, especially with the help of small and large scale property developers. It is one of those places where home buyers are more likely to face bidding wars.

In May of this year, the firm Fundrise acquired an 87-unit development of single-family rental homes in Palm Bay, Fla., in a $45.7 million deal—Cypress Bay development in SouthEast Palm Bay. Why did they do it? Because Palm Bay is one of the top cities in Florida for investors to buy today.

Palm Bay Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Palm Bay Florida real estate:

  • Median Property Price: $339,850
  • Appreciation Rate: +38.2% over last year
  • Monthly Traditional Rental Income: $1,744
  • Cash on Cash Return: 3.84%
  • Price per Square Foot: $196
  • Median Days on Market: 45 days
  • Rent-To-Value (RTV): 0.51%
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2. Winter Haven, Florida

The Lakeland-Winter Haven MSA was named the third best city in the nation to invest in real estate by GoBankingRates. With an excellent location and affordable cost of living, it’s no wonder this region is becoming popular.

Over the past ten years, the Chain of Lakes city’s downtown has transformed—thanks, in no small part, to a collaborative approach to community investment and development.

One of Winter Haven‘s most popular attractions is the LEGOLAND theme park which has attracted millions of families from all over the world to Winter Haven over the past ten years.

Winter Haven Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Winter Haven Florida real estate:

  • Median Property Price: $300,600
  • Appreciation Rate: +24.5% over last year
  • Monthly Traditional Rental Income: $1,535
  • Cash on Cash Return: 3.12%
  • Price per Square Foot: $180
  • Median Days on Market: 12 days
  • Rent-To-Value (RTV): 0.51%

3. Orlando, Florida

Another one of the best places to invest in real estate in Florida is Orlando. Most people think of Orlando as the vacation capital of America. And it’s true, Orlando is one of the most popular travel destinations in America. Some homeowners in Orlando make a second income by renting out their property to vacationers.

In fact, Orlando was ranked as one of the best places to buy rental property by Realwealth last year. This ranking was based on key investment criteria such as cash flow, affordability, job market and population growth.

Orlando is currently 12th in the nation for new construction and 11th in terms of investment. Plus, there has been an increase of $2 billion in apartment investments since 2020 – a 51% increase over two years!

Orlando, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Orlando Florida real estate:

  • Median Property Price: $375,000
  • Appreciation Rate: +19% over last year
  • Monthly Traditional Rental Income: $1,860
  • Cash on Cash Return: 2.40%
  • Price per Square Foot: $231
  • Median Days on Market: 8 days
  • Rent-To-Value (RTV): 0.50%

4. Ocala, Florida

With over 100 years of history and a population of 65,047 as of 2020, this North Central Florida town is known as one of the safest cities in the country. Located just north of Tampa and Orlando and within two hours’ drive from Jacksonville, Ocala offers a mix of affordability, fast equity growth—and solid cash flow for investors.

Ocala was in the top 10 places to move to in 2020, based on UHaul’s annual migration report. It also ranked on Realwealth’s list of the best cities to invest in. And if that doesn’t get you excited about investing in this up-and-coming city, then maybe its proximity to other major metropolitan areas will: Tampa and Orlando are only 97 miles apart, while Jacksonville is just an hour and a half away. The College of Central Florida campus and Rasmussen College are both located here too!

Ocala, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Ocala Florida real estate:

  • Median Property Price: $272,000
  • Appreciation Rate: +25.8% over last year
  • Monthly Traditional Rental Income: $1,442
  • Cash on Cash Return: 2.95%
  • Price per Square Foot: $169
  • Median Days on Market: 11 days
  • Rent-To-Value (RTV): 0.53%

5. Dunnellon, Florida

Dunnellon is located in Marion county, 25 miles southwest of Ocala and is part of a larger area known as the “Nature Coast.” According to RealtyTrac’s list of top retirement hot spots, Dunnellon was number one on the list. And it’s not just retirees who are drawn here—the city has a growing population and is becoming increasingly attractive to younger residents as well.

In addition to being an attractive destination for retirees, Dunnellon is located near many recreational opportunities including fishing, boating and golfing.

Dunellon, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Dunnellon Florida real estate:

  • Median Property Price: $266,000
  • Appreciation Rate: +15.7% over last year
  • Monthly Traditional Rental Income: $1,442
  • Cash on Cash Return: 2.06%
  • Price per Square Foot: $178
  • Median Days on Market: 11 days
  • Rent-To-Value (RTV): 0.54%

6. Port Charlotte, Florida

Port Charlotte is another one of the best places to buy real estate in Florida in 2022 and into 2023. Situated halfway between Sarasota and Fort Myers, Port Charlotte is a perfect stop for aquatic activities. The area has over 165 miles of waterways leading to Charlotte Harbor, the Gulf of Mexico and the Myakka rivers. If you’re not into swimming or boating, you can always just sit back and enjoy a nice view of water from the decks of some local restaurants.

Port Charlotte and North Port are bedroom communities. People live there but work in Sarasota or Venice. Some commute as far as Tampa!

Port Charlotte, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Port Charlotte Florida real estate:

  • Median Property Price: $340,000
  • Appreciation Rate: +36% over last year
  • Monthly Traditional Rental Income: $2,453
  • Cash on Cash Return: 4.24%
  • Price per Square Foot: $228
  • Median Days on Market: 12 days
  • Rent-To-Value (RTV): 0.72%

7. Belleview, Florida

Belleview is a city in Marion County, Florida located 11 miles south of Ocala and 60 miles east of Daytona Beach.

The city was named one of the Florida Trail Gateway communities by the Florida Trail Association. This means that Belleview is one of the cities that offers lodging and other recreational resources to hikers along the gulf of Mexico.

In addition to being a gateway community, Belleview is also attracting interest from investors like Orlando based D32 Invest group which plans to build hundreds of single family homes in three new communities across Belleview. As the population grows with more affordable housing developments, there may be an increase in Belleview’s population as well!

Belleview, Florida: Quick Real Estate Stats

Based on data from Redfin and Ofirio, here are some pertinent stats for anyone interested in investing in Belleview Florida real estate:

  • Median Property Price: $255,000
  • Appreciation Rate: +33.2% over last year
  • Monthly Traditional Rental Income: $1,733
  • Cap Rate: 5.02%
  • Price per Square Foot: $177
  • Median Days on Market: 7 days
  • Rent-To-Value (RTV): 0.68%

8. Tampa, Florida

Tampa is one of the best cities to buy real estate in Florida because it offers a great location for fun coupled with diverse housing options that cater to both rural outdoor lovers and big city lovers. There are endless recreational activities to enjoy, such as fishing, boating, swimming, surfing, golfing, hiking, biking, kayaking, bird watching, camping, tennis, jogging/walking trails.

Tampa was ranked the hottest housing market for 2022 by Zillow. This Florida city is on its way up! The local economy is solid and there are plenty of jobs available in the area. The tourism sector also has a lot of potential for growth as more people discover this hidden gem in the Sunshine State.

The climate in Tampa is mild year round with an average temperature of 70 degrees Fahrenheit. Tampa real estate can be a solid investment for any real estate investor because it has a lot to offer: the local economy is strong; there’s plenty of tourism activity; and long-term growth potential.

Tampa, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Tampa Florida real estate:

  • Median Property Price: $423,000
  • Appreciation Rate: +28.4% over last year
  • Monthly Traditional Rental Income: $2,134
  • Cash on Cash Return: 2.57%
  • Price per Square Foot: $246
  • Median Days on Market: 8 days
  • Rent-To-Value (RTV): 0.50%

9. St. Petersburg, Florida

St. Petersburg is a city that’s the perfect combination of beach fun and urban sophistication. Located in Pinellas County, Florida, right on the Gulf of Mexico and between Tampa Bay, St. Petersburg is known for its warm weather, which means you can enjoy the beach year-round. The city is also home to many cultural attractions, including art galleries and museums like the Museum of Fine Arts and Imagine Museum of Contemporary Glass Art.

One of the things that makes this such an ideal place to live is how easy it is to get around on foot or by bike. The downtown area boasts plenty of shopping, restaurants and bars, as well as cultural attractions like the Salvador Dali museum and Florida Holocaust Museum. If you want to take advantage of all that St. Petersburg has to offer but don’t want to worry about parking (or paying for parking), it’s easy enough just to hop on one of the many trolleys that run through town!

St. Petersburg has several marinas where you can rent boats and enjoy an extended vacation on Florida’s scenic Gulf Coast. The average SFH home in St. Petersburg appreciated 197.75% over the last ten years (according to Neighborhoodscout), putting this city in the top 10% nationally for real estate appreciation.

St. Petersburg, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in St Petersburg Florida real estate:

  • Median Property Price: $379,000
  • Appreciation Rate: +22.3% over last year
  • Monthly Traditional Rental Income: $1,814
  • Cash on Cash Return: 2.36%
  • Price per Square Foot: $312
  • Median Days on Market: 8 days
  • Rent-To-Value (RTV): 0.48%

10. Punta Gorda, Florida

The historic town of Punta Gorda makes our list of the best places to invest in real estate in Florida for a variety of reasons. It has many natural attractions, such as beautiful beaches and waterside shopping. There is also a wonderful Harborwalk lined with restaurants, shops and other fun things to do.

Many properties in Punta Gorda offer great water views. There are a number of state parks and golf courses with an attractive community, fueling the influx of people into the city. Demand for real estate has driven up prices here and many people rent rather than buy, creating opportunity for investors.

Punta Gorda, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Punta Gorda Florida real estate:

  • Median Property Price: $425,000
  • Appreciation Rate: +23.5% over last year
  • Monthly Traditional Rental Income: $2,558
  • Cash on Cash Return: 2.83%
  • Price per Square Foot: $243
  • Median Days on Market: 9 days
  • Rent-To-Value (RTV): 0.60%

11. Ocklawaha, Florida

Ocklawaha, FL is a sleepy town that takes advantage of the natural habitats surrounding it. It is close to the Ocala National forest. The city offers opportunities for outdoor recreation, hiking and horseback riding.

The area is known for its pristine beaches and crystal clear waters. It’s also a great place to take in local culture at one of the many festivals held throughout the year.

Ocklawaha has some great attractions like the Ocklawaha Prairie Restoration Area, a great place for bird watching and bike riding. There’s also plenty of shopping opportunities in this quaint town.

Ocklawaha, Florida: Quick Real Estate Stats

Based on data from Redfin and Ofirio, here are some pertinent stats for anyone interested in investing in Ocklawaha Florida real estate:

  • Median Property Price: $207,000
  • Appreciation Rate: +6.4% over last year
  • Monthly Traditional Rental Income: $1,629
  • Cap Rate: 4.65%
  • Price per Square Foot: $167
  • Median Days on Market: 9 days
  • Rent-To-Value (RTV): 0.79%

12. Port Richey, Florida

Port Richey is in Pasco County, Florida. It’s one of the best cities to invest in Florida today because it is not only close to Tampa but offers everything you’re looking for in a coastal town – from great weather, beautiful landscapes, white beaches, festivals and amazing restaurants.

The area enjoys a good amount of tourism – it’s a great place to visit for families. It also hosts schools like Keiser University and the Pasco Hernando state college

Port Richey, Florida: Quick Real Estate Stats

Based on data from Redfin and Ofirio, here are some pertinent stats for anyone interested in investing in Port Richey Florida real estate:

  • Median Property Price: $250,000
  • Appreciation Rate: +33.7% over last year
  • Monthly Traditional Rental Income: $1,627
  • Cap Rate: 4.66%
  • Price per Square Foot: $203
  • Median Days on Market: 7 days
  • Rent-To-Value (RTV): 0.64%

13. Cape Coral, Florida

Cape Coral is a city that was built on opportunity. But it’s also a city that’s evolved over time.

The Rosen brothers came to Cape Coral in 1957 with a vision: to build a community where people could live, work, and play. Since then, Cape Coral has grown from just over 9,000 residents in 1960 to over 194,000 people today – making it the 130th most populous city in the US.

Cape Coral is located on Florida’s southwest coast and has been dubbed “The Riviera of Southwest Florida” by locals. It boasts a star-studded line up of attractions, from celebrated Gulf Coast beaches to an array of golf courses and family fun at Sun Splash Family Waterpark. With supply low and demand high, home prices have risen sharply in Cape Coral. Rental market demand is growing, providing profitable investment opportunities.

Cape Coral, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Cape Coral Florida real estate:

  • Median Property Price: $430,000
  • Appreciation Rate: +30.3% over last year
  • Monthly Traditional Rental Income: $2,227
  • Cash on Cash Return: 3.11%
  • Price per Square Foot: $259
  • Median Days on Market: 11 days
  • Rent-To-Value (RTV): 0.52%

14. Lakeland, Florida

Lakeland is located in Polk County in Florida, right along Interstate 4 east of Tampa. It has a population of 112,641.

The city is known for having some of the best lakes in the country: Lake Parker and Lake Gibson are great places to enjoy nature (and also get some exercise) with your friends or family.

It’s one of the top cities in Florida to invest in real estate, because appreciation is high and crime rates are low—along with being close enough to Orlando but far enough away from it all—Lakeland might be just what you need.

Lakeland, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Punta Gorda Florida real estate:

  • Median Property Price: $330,000
  • Appreciation Rate: +22.2% over last year
  • Monthly Traditional Rental Income: $1,710
  • Cash on Cash Return: 3.31%
  • Price per Square Foot: $197
  • Median Days on Market: 9 days
  • Rent-To-Value (RTV): 0.52%

15. Deltona, Florida

With a population of 95,394 and a median home price of $230,000, Deltona is the largest city in Volusia County. It’s also home to a variety of planned communities, with prices ranging from $150,000 to $350,000.

If you’re looking for a central location between Daytona Beach and Orlando, Deltona is the place to be. It’s also just 90 miles south of Jacksonville.

With lots of affordable housing and planned communities, Deltona serves as a bedroom community for people working in Daytona and Orlando.

Deltona, Florida: Quick Real Estate Stats

Based on data from Redfin and Mashvisor, here are some pertinent stats for anyone interested in investing in Punta Gorda Florida real estate:

  • Median Property Price: $317,450
  • Appreciation Rate: +29% over last year
  • Monthly Traditional Rental Income: $1,674
  • Cash on Cash Return: 3.38%
  • Price per Square Foot: $203
  • Median Days on Market: 9 days
  • Rent-To-Value (RTV): 0.53%

Conclusion

There you have it! Our list of the best places to invest in real estate in Florida in 2022 and 2023. If you’re thinking about investing in the Florida market, we have a few tips for you:

  1. Invest in a property that already has a high paying tenant, or one that is close enough to a city where there’s a lot of demand for rental properties
  2. Make sure that the property is already built out and has lots of potential for improvement OR build it yourself with a developer you trust.
  3. Look for a property with easy-to-manage tenants e.g. SFH tenants

Ready to invest in the Florida market? Check out some of B2R Direct’s new and upcoming build to rent listings throughout the beautiful state of Florida.

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