By Marisa Spyker / Photo by Getty Images
Because the best investments come with high returns on sunshine.
If there’s a common wish on every beach lover’s bucket list, it’s to own a vacation home by the shore. But aside from the obvious benefit of providing a breezy escape from reality, a beach house can also be a lucrative asset–particularly if you invest in one in Florida.
According to a report from Rented.com, the land of sunshine and white sand holds more profitable vacation rental markets than any other state in the country, with 15 Floridian cities poised to earn homeowners more bang for their buck. And if what you’re looking for is the maximum return on your beach house investment, you should look no further than the Gulf Coast city of Pensacola, which beat out all other coastal towns when it came to the highest return on investment (ROI).
According to a report from Rented.com, the land of sunshine and white sand holds more profitable vacation rental markets than any other state in the country, with 15 Floridian cities poised to earn homeowners more bang for their buck. And if what you’re looking for is the maximum return on your beach house investment, you should look no further than the Gulf Coast city of Pensacola, which beat out all other coastal towns when it came to the highest return on investment (ROI).
To determine a market’s rental potential, Rented.com looked at factors including real estate prices, property taxes, and average maintenance costs, as well as rental and occupancy rates, rental property demand, and any legal regulations that might make renting short-term on platforms like Airbnb difficult. Coupled with pandemic-related factors such as travel restrictions and limited inventory, urban markets are cited as less desirable locations for vacation properties. And vacationers are also seeking drive-to destinations.
“The Gulf Coast is still experiencing some of its best numbers due to its drivability for residents in the southeast,” reads the report. “This area is also ripe for opportunities to invest, as asset prices have not risen nearly as fast as those in other markets.”
As a vacation capital, Florida is an obvious choice for a rental property investment. And with hundreds of miles of attractive shoreline peppered with small- to medium-sized beach towns, occupancy rates tend to be high year-round while competition can be low. Throw in the fact that you can score an oceanside home for less than $300k in some cities, and, really, there’s no reason not to buy a beachfront escape in Florida as soon as possible.
