Two Florida cities make the top 3 list of the hottest places in the U.S. for Millennials to buy investment properties that result in long-term value and create extra cash every month.
In 2007, nearly two-thirds of Americans were investing in the stock market, last year just over half did, according to Forbes. Millennials— people born from the early 80’s to early 2000— are skeptical of the stock market and are turning to real estate. The two cities they’re choosing for investment properties are in Florida… Orlando and Miami and no one know these areas better than Real Pro.
According to survey results, 55 percent of Millennials think of real estate as the best investment opportunity; the highest percentage of all demographics questioned. Research from Fannie Mae supports these findings, reporting that 85 percent of Millennials think real estate is a good investment. With such a strong preference for investment properties, it is important to understand why Millennials are interested and how they may invest in the future.
According to a recent Pew report, there are 75.4 million Millennials as compared to 74.9 million baby boomers. As the largest age group in America, Millennials will have the greatest ability to shift the real estate market, especially in Florida, rendering them a key generation to understand. Real Pro knows the hottest areas for investment properties in Florida and Miami and Orlando are at the top of the list.
Millennials are attracted to the affordable real estate and solid job opportunities in Miami. Many find employment in technology, tourism, international trading, and the booming construction field. Beyond the attraction of opportunity and weather, Millennials enjoy the night life, various festivals, performing arts center, artistic community, and music scene. Up-and-coming neighborhoods like Little Haiti and North Miami are appealing to this influential group and some are buying investment properties— like duplexes, condominiums and multi-family complexes— to partially inhabit and rent out as an income producing means for increased cash flow and long term value.
In Orlando, the beaches, amenities, night life and attractions appeal to Millennials, who account for 14.6% of the population, but so does the 2017 unemployment rate. Currently only 3.6% of residents are in need of a job. The median average annual household income is just under $45,000; an impressive number considering the average in Floridaand in the U.S. is $39,000 a year.
And the cost of real estate in Orlando? 75% of single-family dwellings are valued from $100,00-$200,000— and only require 34% of income. With as little as $25,000 to invest Millennials can begin, or expand, their financial portfolios. If they choose a multifamily investment property, quality tenants will be easy to come by, as 40% of residents choose to rent. Which areas in Orlando appeal to Millennials? Like most of the country, any part of town with character. Real Pro has found Thorton Park and Lake Eola Heights to be the most popular choice. Millennials looking for tangible assets are turning to Real Pro for the best investment properties in Florida. Give us a call today and start looking for investment properties in Miami, Orlando and additional areas in Florida that appeal to Millennials. We know Florida real estate better than anyone else in the business and can help you get started today!