Florida owes many of its natural wonders to geography. However, it’s smack in the middle of the path of hurricanes. Although storms are part of the state’s rich tapestry, some real estate investors question whether Floridian properties are worth it. If you share the same sentiment, you must know Florida houses are still a terrific investment.

Thinking of them as a lost cause is unjustified because extreme weather is just a tempest in a teapot. Here are nine reasons the state’s real estate future is sunny — even during cloudy days.

1. Strong Retiree Magnet

The Sunshine State’s reputation as a retirement haven is as old as time. Florida has over 4.6 million residents aged 65 and above, accounting for 21% of its population. Besides warm weather, friendly tax policies consistently attract seniors to the state.

In the Retirement State, you get to keep all of your income. You can pocket 100% of your Social Security benefits, 401(k) distributions, dividends, and capital gains from investments and wages should you return to work. Moreover, Floridians enjoy many sales tax holidays. A lot of children’s goods are tax exempt, so grandparents can spoil their grandkids and save money.

If you win the lottery in the country’s Citrus Capital, you’ll be even luckier — the state government wants no slice of the pie. Regarding property taxes, Florida charges less than 1% of an owner-occupied property’s assessed value — the 25th lowest effective real estate tax rate in the United States. As long as the state remains a tax haven for pensioners, its real estate markets will benefit from the influx of retirees who want housing to spend their sunset years there.

2. Booming Tourism

Florida is one of the most visited states in the U.S. In 2022, it welcomed 137.6 million tourists — the highest in its history.

The peninsula has abundant attractions to lure visitors across the country and the world. It’s home to Walt Disney World Resort, Magic Kingdom Park, Universal Studios, SeaWorld and LEGOLAND, earning it the title of the Theme Park Capital of the World. Likewise, it has nine teams across the four major professional sports leagues. It’s blessed with white-sand beaches that rival world-class Caribbean attractions, too.

Flourishing tourism is one of the drivers of Florida’s robust real estate markets. If you own a property in or near a tourist hotspot, your asset can grow your wealth in multiple ways.

3. Favorite Snowbird Destination

Snowbirds — usually from Canada — escape the cold and seasonally migrate to regions with milder winters. Unlike ordinary tourists, these visitors can stay in the States 182 days a year. Their extended stays allow them to contribute big time to local economies.

Many snowbirds own residences in Florida, making the Sunshine State their second home. When they’re away, they rent out their vacation houses and earn passive income. Those who prefer to lease and spend their winter in different destinations bring cash to landlords’ pockets.

4. Surging Job Growth

Corporations are having a more favorable view of Florida. It’s one of the biggest beneficiaries of the exodus of California companies, making Miami the new home base of tech startups fleeing Silicon Valley. In July 2023, the state recorded more jobs than New York, representing 3.2% growth year over year.

Rapid corporate migration to Florida will create a positive chain reaction. When businesses relocate, they bring their employees or generate new jobs. Either way, the deluge of prospective renters and buyers will drive up property prices in top corporate headquarters relocation spots like Jacksonville.

If you own a property in a strategic location, consider being a landlord. Your responsibilities will depend on your rental, but maintenance duties will come with the territory.

If you want to cash out on your home equity, you can move and reinvest in a neighborhood in an emerging market with more room for growth. Cape Coral, Tallahassee, St. Petersburg, Pensacola and Port Charlotte are some of the Gulf State’s hottest cities.

The National Association of Home Builders says properties with energy-saving features lure many buyers. That’s why houses that reflect sunlight, generate their electricity to be grid-independent and light the indoors without producing too much heat are an easy sell in Florida.

Make your home as energy efficient as possible to get attractive offers from aspiring settlers who want to build their careers. If your property is also storm resistant, it may sell itself and bring you a handsome return.

5. Massive Student Population

The Land of Flowers has dozens of colleges and universities, serving as a temporary home to hundreds of thousands of students. Many live off campus and provide positive cash flow to rental property owners.

Although students tend to move elsewhere after graduation, more will likely stay because of the increasing number of Fortune 500 corporations in Florida. By 2022, 23 of the largest companies in the U.S. had HQs in the Everglade State.

6. Burgeoning Citizenry

Florida’s population ballooned by 1.9% in 2022, overtaking Idaho as the nation’s fastest-growing state. The fact that it’s already one of the biggest demographically makes this milestone more impressive. Furthermore, it ranked first in domestic net migration in the same year.

Since the end of World War II, the Peninsula State’s population has increased more than ninefold. Florida has consistently had a positive annual growth rate for the past seven decades, so more people have moved into it than left since 1950.

7. Recession-Proof Home Values

The house prices in Florida rose when the U.S. fell into a recession from February to April 2020. They sustained their upward trend amid the pandemic’s height — proof of people’s strong desire to be in the state. If you have a mortgage in the Orange State and want to avoid negative equity during economic storms, government data shows you should stay.

8. Non-Existent Rent Control

Florida is a paradise for rental property owners. It has no rent control, so you can adjust rent based on market demand. Although the state has a housing crisis like the rest of the country, its lawmakers believe the answer is more supply and not a cap on rental premiums.

9. Diverse Property Options

Only some places can match the variety of properties you can buy in Florida. If you’re interested in residential real estate investing, you can choose from the following:

• Single-family homes

• Duplexes

• Triplexes

• Townhouses

• Apartments

• Condos

• Timeshares

• Vacation rentals

• Villas

With various options at your disposal, you can select a property that suits your budget and lifestyle.

Real Estate Is Sunny in Florida

Risk is an irremovable aspect of residential real estate investing, but minimizing it as much as possible is your key to success. Judging by how things are going in the Tropicana State and its rosy outlook, it’s clear that using a Florida home as your retirement plan is a safe bet.