The Forbes website has included Cape Coral in a list of how to invest in Florida real estate.
It says single-family rentals is still an option in Cape Coral, where the average rent ratio versus price is at 18-times.
Forbes.com lists the average property price as $270,000 and the monthly rent as $1,218.
“Be sure your rent is no more than about 25% above the average monthly rent; that’s where the largest concentration of renters is found. In a downturn you won’t find many takers above that rent level.”
Cape Coral has strong jobs growth of 3.9% in the last year, which is another reason to invest in Florida real estate.
“Note first that job growth—the most important driver of demand for housing—in all of these markets is impressively high. The national average increase over the past year was only 1.8%.
“In addition, with a few exceptions, the rate of growth is well above the rate of six months ago. The acceleration of growth suggests that demand for housing will stay strong for a while.”
Jobs are not the only thing that affects real estate markets in Florida. Another major factor is the constant flow of retirees into the state. A second factor is the flow of South American money. On top of that, and most difficult to measure, is pre-retirement investing—future retirees who figure they might as well buy now and rent the place out until they move. This last phenomenon often kicks in sharply when home prices rise.
“There’s more to decision-making than these general stats, but understanding the special economic circumstances of a market can help you make a successful investment,” the website concludes.