Florida is the top state for real estate investment by international sources, with 21% of all foreign investment in real estate in the United States going to the Sunshine State.
That’s according to a National Realtor’s Association report that include numbers from 2010 through 2015.
In all six of those years, Florida led all states in international real estate investment. California was second, followed (distantly) by Texas, Arizona and New Jersey.
And while Los Angeles ranked as the top city searched by international clients on realtor.com, Florida cities dominated the list. They include Miami, Orlando, Miami Beach, Kissimmee, Naples, Fort Lauderdale, Cape Coral, Jupiter and Tampa.
Why International Investors Choose Florida
Everyone knows about the sunshine and beaches of Florida, where the weather is some of the best you can find in the world. The Sunshine State is also home to many world-class amusement parks.
The state also has perhaps the strongest tourist industry on the planet.
Clearly, that’s one of the main drivers behind all the money pouring into the state in real estate investment. For many foreign visitors, Florida is what they know about the U.S.
But there are also other factors, including:
Reasonable prices. Vacant land in Florida is priced below the level you will find in, say, California.
Both commercial and real estate. With more than 1,000 people again moving into Florida every year, there are opportunities for investment in both commercial and real estate property.
A weak U.S. dollar. While the dollar has shown more strength in 2016, it remains weaker than historical levels against many foreign currencies. This means that for international investors, there are potentially far greater profits to make by putting their money into U.S. property.
Cheaper maintenance costs. Compared with prices in much of the industrialized world, the U.S. in general and Florida in particular have lower costs for maintenance and repairs on property, making it more attractive for international investors.
The Outlook Going Forward
In both Florida and across much of the United States, 2015 was a strong year in both residential and commercial real estate, making investment attractive for both domestic and international investors.
But what’s in store for 2016?
According to many forecasts, the housing market overall in 2016 should remain strong in much of the U.S. While no one is predicting a bubble like the one experienced last decade, the expectation is that real estate prices should remain steady and strong across much of the U.S., including Florida.
One forecast, from Housing Predictor, had Miami at the top of the list of cities where both domestic and international investors will focus their money. Miami has become an “international destination” and a “world-class resort community,” according to the site.
The other city on the list is Naples, on the southwest coast of the state.
By the end of 2016, expect Florida to once again rank near or at the top of the list of states where international investors are finding it profitable to put their money into real estate.