Florida Captures 7 out 15, Naples SW Florida Winner
Florida overwhelming choice for retirees, Naples #2 out of 15 in the U.S.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
(ooops, couldn't find a "Top 15" image...)
A new report by RealtyTrac, a California-based company that tracks the real estate market, published its list of fifteen "retirement hot spots." Of the fifteen cities, seven are located in Florida and Naples Florida comes out on top for the southwest Florida region.
The list was based on cities that are likely to grow over the next few years and have a population that is at least one third 65 or older. Forty cities across the U.S. were evaluated. The year-over-year price increase in May for single-family detached and attached homes were analyzed. Naples increased 26.8% while Dunnellon Florida, located east of Tampa and west of Gainesville, increased 31.4% to capture the number one spot overall.
Another factor considered was the capitalization rate or cap rate. Cap rate is a number used by investors to measure the amount of return on investment which is typically computed to evaluate income producing investments such as single-family and multi-family rental property and commercial property. Dunnellon came out on top again with 10.3% cap rate versus 3.8% in Naples. The higher acquisition cost in Naples compared to the current rent rates drive this number lower. Purchasing a second home and/or retirement property usually is not driven by cap rate but more importantly by purchase price.
Comments (2)Subscribe to CommentsComment