With miles of coastline along the Atlantic Ocean and the Gulf of Mexico, Florida attracts more than 140 million tourists each year, attracting many to settle in the sunshine state.
But despite the desirable climate, plenty of activities and no state income tax, Yawar Charlie, director of real estate and senior real estate agent at Aaron Kirman Group, urges caution for potential buyers.
“When it comes to real estate, not every sunny spot in the Sunshine State is a smart investment,” Charlie said. Check bank interest rates.
Charlie, who also stars on CNBC’s “Listing Impossible,” emphasizes that “real estate investing isn’t just about sunshine and palm trees. It’s important to consider economic stability, growth potential and environmental risks.”
He advises considering economic forecasts before being tempted by Florida’s warm weather: “Having enough information and a strategy will help you find the true gems in the market,” he said.
Based in Los Angeles, Charlie’s client base spans both California and Florida, giving him deep insight into both real estate markets. He has identified five Florida cities that he recommends as the top destinations for real estate investment over the next five years.
Miami Beach
Although Miami Beach is known for its beautiful beaches, vibrant nightlife and world-class dining, Charlie doesn’t recommend buying property there.
“Miami Beach certainly has its appeal, but rising sea levels and more frequent hurricanes pose significant risks,” he said.
“Property insurance costs are rising and there’s a real possibility that it could decrease in value over the long term. It’s like buying a beautiful beach house with a time bomb in the basement.”
Daytona Beach
While Daytona Beach, known for its 23 miles of white sand beaches and affordable prices, may seem appealing, Charlie warns against investing there.
“Daytona Beach is known for its speedway, but it suffers from a stagnant economy and high crime rates,” he said.
According to Neighborhood Scout, 1 in 28 people could be a victim of a violent or property crime.
“The property market is sluggish and, barring any major economic developments, property prices are likely to remain flat. Investing here could leave you feeling stuck.”
Fort Myers
Fort Myers, a popular place for retirees, also faces challenges.
“Despite being an attractive city for retirement residents, Fort Myers faces overdevelopment and environmental issues, particularly regarding water quality,” Charlie said.
“The housing market is unstable and the long-term growth outlook is uncertain. It’s like buying a fancy car that may run out of gas.”
Pensacola
While Pensacola’s picturesque turquoise waters and white sand beaches are appealing, Charlie advises caution.
“The city is facing economic challenges and limited job growth, which is impacting the housing market,” he said.
“High crime rates and a lack of new development projects make it less attractive to investors.”
Neighborhood Scout reports that Pensacola has a crime rate 86% higher than other cities in the state, meaning one in 33 people could be a victim of a violent or property crime.
“Investing here can be like trying to catch a wave in a kiddie pool,” Charlie said.
Okara
Even in Ocala, known for its beautiful, clean, and wallet-friendly environment, risks do exist.
According to Neighborhood Scout, “Ocala has one of the highest crime rates in America compared to communities of any size.”
Charlie added, “Ocala’s real estate market, while affordable, is held back by slow economic growth and a lack of amenities. The region is heavily dependent on agriculture and is prone to instability.”
“It’s a quiet town, but that quietness can come at the expense of investment growth. Think of it like putting money into a time capsule with no guarantee of future returns.”
