Pensacola, FL
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Top 5 reasons to invest in Pensacola, FL
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As one of Florida's 10 largest metro areas, Pensacola offers many opportunities for real estate investors. It is a popular place to live, a tourist destination, and a short-term rental-friendly area, giving investors many options.
Pensacola has experienced steady population growth, with the current count at 510,290 residents, a 1.41% change from the previous year. This growth, coupled with the area’s 207,329 households averaging 2.4 members, just below the national average, presents promising opportunities for investors to consider purchasing properties of various sizes, catering to different budget restraints.
Pensacola's median home price of $304,191 is compelling for investors. This figure represents a 2.3% change from the previous year's home price.
Pensacola's rental rates are notably lower than the national average, making it an attractive option for residents and real estate investors. The median rent is $1,739, a 2.6% change from last year. The rent-to-price ratio is 0.6%.
The area is home to many large industries and businesses, attracting many high-level professionals. The main industries are aerospace and defense, advanced manufacturing, and cybersecurity. The area also has a 3.5% unemployment rate, and the average income in the area is $69,374. Pensacola also has a heavy military presence and is known as the Cradle of Naval Aviation.
The area has one four-year college, the University of West Florida, home to 14,300 students. Around 40% of these students come from areas other than West Florida and potentially need student housing.
The Pensacola area is known for its vacation rentals along the Gulf of Mexico. The market is short-term rental friendly, giving investors options to take advantage of the 2.5 million-plus visitors annually. Insurance rates may cut into some cash flow, especially at properties near the beach.
The median resident's age is 38.9 in the market. Since about half of renters are 45 or younger, this provides investors with a large tenant pool. Approximately 31% of properties here are rentals, and the vacancy rate is only 10%, reassuring investors of the stability of their investment in the Pensacola real estate market.
Overall, Pensacola offers investors the best of both worlds, whether you want a long-term lease or prefer the profits of short-term rentals. With a prominent college and military base in the area, a diverse crowd of potential tenants is looking for rentals. The home prices are affordable, and rent isn't super high, making it affordable for those just starting their journey or experienced professionals who prefer to rent rather than buy a property.
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