Best Buy Cities: Where To Invest In Housing In 2016
- With housing prices rising but wages stagnant, 2016 is likely to be a year of worsening affordability for homebuyers, especially low- and middle-income earners, according to Zillow, a real estate data-tracking company. That’s bad news for many people hoping to buy a home for the first time. But for investors looking to put their money into rental properties, these economic conditions point to continued strength in that market.The clear takeaway: there are good values to be had in Florida, which placed seven cities on our list.In second place on our list is Orlando, followed by six other cities in the Sunshine State, including Fort Lauderdale (No. 8) and Cape Coral (No. 10). Among them, average home prices are highest in West Palm Beach (No. 19), at $285,000, and lowest in Tampa (No. 14), at $193,000, but have been accelerating at a rate of 9% to 14% in all the Florida cities.
Why is Florida, of all places, dominating the list? “The Florida situation surprised me,” admits Winzer. But in light of the national economic recovery, Florida’s rise makes a lot of sense. Because it attracts retirees, second-home buyers, and investors, the Sunshine State’s housing market is subject to more volatility than other markets. With would-be retirees and vacationers staying away during the downturn, housing prices tumbled dramatically. “Since the national economy has stabilized and is growing again, the factors that prompt people to go to Florida have recovered,” Winzer said. As retirees and vacationers return, they need services, in turn creating a steady stream of jobs, which leads to a steady supply of renters. Last year Florida added nearly a quarter-million jobs, Florida TaxWatch reports.