Tampa ranks among the top cities in the country for real estate investment, according to a recent report that rated cities across the country.
Tampa ranked second among all cities for real estate investment, according to the report from GoBankingRates.com. The site also included four other Florida cities in the Top 15: Orlando (1), Miami (10) and Jacksonville (13).
The report focused on investment properties, primarily property to own and rent out. The report considered four main factors for 61 of the 100 biggest cities in the country: employment growth, population growth, increases in home value and the number of years it would take rental income to pay off median home value.
GoBankingRates.com offers an online portal for people to connect with financial services across the nation, as well as provide information about personal finances.
The Top Cities for Real Estate Investment
Using this formula, GoBankingRate.com came up with a list of the best cities for real estate investment.
These cities make up the top 15:
- Orlando, Fla.
- Tampa, Fla.
- Denver, Colo.
- Seattle, Wash.
- Austin, Texas
- Reno, Nev.
- Dallas, Texas
- Portland, Ore.
- Raleigh, N.C.
- Miami, Fla.
- Nashville, Tenn.
- Phoenix, Ariz.
- Jacksonville, Fla.
- Charlotte, N.C.
- Richmond, Vir.
On the other end of the spectrum, cities that were ranked among the worst for real estate investment included Anchorage, Alaska; Pittsburgh, Penn.; Chicago, Ill.; Virginia Beach, Vir.; and Cleveland, Ohio.
Population Growth Fueling Market
One of the reasons Florida has four cities in the rankings is the recent population boom. In 2014, Florida passed New York to become the third most populated state in the country (behind California and Texas). Overall, the state’s population has grown almost 8 percent since 2010, reaching an estimated 20.2 million in July 2015, according to the U.S. Census Bureau.
“Growing populations in the top cities on our list are fueling the need for more housing,” Cameron Huddleston, life and money columnist for GoBankingRates, told the Tampa Bay Times. “That’s why these cities are such great places to own investment property now.”
The entire Tampa Bay region is among the fastest-growing in the state. An economic report from the state earlier this year showed that the region is again growing at a fast pace, with employment growth in areas such as the life sciences. Also, tourism continues to increase.
Hillsborough County added 30,725 people in just one year, between July 2015 and July 2016. The 2.2 percent increase in population raised the county’s total population to 1.35 million. The increase came not just from the U.S. – more than 8,500 of the new residents came from other countries.
All of this has added up to Tampa becoming one of the best markets for real estate investment. With the population and job growth expected to continue over the coming decade, the trend likely will continue.