The number one rule of investing and buying property has always been location, location, location. For that reason, it is crucial that you choose to buy your investments in a market with great rental potential. Pensacola truly shines as an area that supports some of the most profitable rental properties in the country. There are many reasons why Pensacola maintains a competitive and active rental market, making it a great market for real estate investments. I will break down our top four reasons why you should want to invest in Pensacola real estate.
Pensacola’s economy is strong, especially in the past 10 years. The Pensacola area now has over 500,000 residents, making it a medium sized metropolitan area. With low unemployment and an increasing number of jobs coming to Pensacola, Pensacola’s employment and job markets are strong which is vital in the growth of a community. Pensacola is military community with strong military ties. This helps us to maintain a competitive rental market and a stable economy. The area is home to multiple large military bases. Naval Air Station Pensacola is in West Pensacola and employs more than 25,000 active-duty military and civilians. Naval Air Station Pensacola is most known for being a training base for military aviators and home to the U.S. Navy Blue Angels. NAS Pensacola is also known for its cyber security training at Corry Station. Nearby Naval Air Station Whiting Field, which is just a quick 15–30 minute drive to your east into the neighboring city of Milton, Florida, is another military training base for naval aviation training. Finally, Eglin Air Force base is less than an hour drive away from Pensacola in Fort Walton Beach, Florida. These military bases constantly provide investors a steady stream of new quality residents and provide stable employment to the Pensacola area. Most military personnel only get stationed in an area for a few years at a time and for that reason, many service members rent a home when they get to NAS Pensacola or Whiting Field NAS.
Pensacola also has a steady stream of renters from multiple colleges in the city as a well. Pensacola is home to the University of West Florida in Northeast Pensacola. The university sits on the 3rd largest area for a state university, encompassing 1,600 acres. The university currently has over 16,000 students attending yearly, and they offer over 70 different programs. The other college you will find in the area is Pensacola State College, formerly named Pensacola Junior College. This college has an even larger student population, with 36,000 students currently enrolled. PSC also offers over 100 different programs and has multiple campuses in the area between the Pensacola, Warrington, and Milton. Much like the military bases, many of these students will be coming to this area for just a few years and during that time, they will likely need a place to rent. This student population provides another massive group of renters each year for this area and further increases housing demand. These colleges provide one more example for why Pensacola is a great place to make real estate investments.
Scenery and weather are huge draws for people to visit and relocate to an area. Pensacola has some of the most breathtaking beaches in the country, paired with a subtropical climate year round. Visit Pensacola announced more than 2.5 million tourists visited Pensacola in 2022. Most flock to Pensacola because you can find some of the most beautiful, white sand beaches just a few miles away in each direction. Southwest of Pensacola, you will find Perdido Key Beach, and just to the east you’ll find Pensacola Beach. Pensacola Beach is consistently ranked one of the most beautiful beaches to visit in not only the U.S, but also in comparison to anywhere in the world. Pensacola Beach makes many lists of the Best Beaches in the country each year including coming in # 4 on Trip Advisors list in 2020 . Beaches along the Florida panhandle including Pensacola and Navarre Beach feature some of the whitest sand you can find in the entire world and mixed with the turquoise water creates one of the best views in the country. Snowbirds tired of the brutally cold winters are seeking refuge in Florida. These views attract thousands of tourists each year and with them comes another need for temporary housing. Those breathtaking beaches provide yet another solid reason for why you should invest in Pensacola.
While location is an important part of a real estate investment, it all comes down to pricing and return on income. Luckily Pensacola checks the box of affordability as well as it’s one of the most affordable metros in Florida. Sites like Property Club have even named it the most affordable city in Florida overall. This means that finding investments can come at a low cost, while still having a desirable location for new people to visit and live in. That price to rent ratio was the best one in Florida, when Southern Living was comparing beach towns. The median home value in Pensacola was only a mere $235,000 in 2022 compared to around $400,000 in the rest of the state. For that reason, Pensacola is consistently placed in the top 10 most affordable beach towns in Florida. Just last year, Southern Living wrote an article citing Pensacola as the #1 place to buy a vacation home in Florida. The area is a prime tourist destination with the pearl white beaches, so the demand for vacation rentals will always be high. This makes Pensacola a great place to invest in both a short-term vacation rental and a long-term rental property, as well as a popular destination for vacation or second homes.
With these strong appealing factors, you can rest assured that your investment in Pensacola will be one of the best you can make in not only Florida, but the entire country. Are you ready to build your Pensacola investment portfolio? Contact us today.
