Housing in Boca Raton represents resort real estate in Florida. The city, situated on the eastern coastline of the state, is known for its beaches, high quality of life, developed infrastructure, and numerous amenities. These include prestigious schools, modern clinics, shops, cafes, and restaurants. The steadily growing economy of the region makes it attractive not only to expats planning to relocate permanently but also to buyers interested in capital growth. Real estate investments here are highly sought after.
For foreign investors, investments in houses and apartments in Florida in this region can be as interesting as they are for US residents. Let us consider the advantages of Boca Raton as a city for housing investments, ascertain the expected purchase prices, and determine the potential income in the long run.
Content:
- Real estate costs in Boca Raton
- Minimum investment threshold
- State of the real estate market in numbers
- 5 reasons to invest in Boca Raton
- Conclusion
Real estate costs in Boca Raton
Property prices in the city depend on its type, area, number of bedrooms, and proximity to the coast. When selling apartments in new off-plan projects in Florida, the level of development of the residential complex is also taken into account, i.e., the presence or absence of additional amenities. As of the article publication, one can observe the following sale prices:
- 1-bedroom apartments are offered at $155,000;
- 2-bedroom apartments are priced at an average of $200,000;
- 3-bedroom residences can be purchased for $400,000.
However, the offerings vary drastically in terms of prices. Houses in Florida of similar square footage and layout, having 4 bedrooms, can be bought for either $780,000 or as much as $4.2 million. The highest price for a villa at the time of the article publication is $14.9 million.
Minimum investment threshold
Speaking of the minimum investment size, housing can be purchased at the following prices:
- $95,000 for a 1-bedroom apartment;
- $139,000 for a 2-bedroom townhouse;
- $284,000 for a 2-bedroom villa.
The real estate prices in the region cater to different budget levels.
State of the real estate market in numbers
According to data from the US Census Bureau, the population of Boca Raton has been increasing annually by 1.46% over the last 10 years. As per a report from analytics firm CoreLogic, Miami leads the country in annual home price growth, a trend that has been ongoing for more than 11.5 years. However, whereas the average price growth for residential real estate in Boca Raton was previously 1.19%, it has significantly increased in recent years. In 2022, the cost of houses rose by 15.7%, and condos and townhouses by 21.6%. In May 2023, housing prices in the state increased by 11.8% on a year-on-year basis.
The median rent in Boca Raton is $2700 per month, considerably higher than the national average rent, which is $1700 per month. Local prices have surged partly due to wealth migration to Palm Beach - the county where Boca Raton is located. According to an analysis by the Miami Association of Realtors, new households moving to Palm Beach have an average income exceeding $242,000. These factors directly influence the profitability of real estate investments.
5 reasons to invest in Boca Raton
Boca Raton, Florida's picturesque hotspot, offers lucrative opportunities for real estate investment. Here are five compelling reasons that underline its promising prospects:
- Convenient geographical location. It is possible to reach Miami and Miami International Airport from Boca Raton in an hour, and Fort Lauderdale along with a major sea port with cruise liners within 35 minutes.
- A developed economy, sustained by the operations of several large corporations such as Office Depot, ADT, and Cancer Treatment Centers of America. They attract specialists, including those from abroad, fostering population growth. Also, the stable economy ensures potential for housing investments.
- Population growth indicates the region's attractiveness. As the number of inhabitants increases, the demand for real estate also grows, making housing investments profitable.
- Steady price growth for apartments and houses instils confidence that villas or apartments in development projects in Florida, particularly in Boca Raton, can be sold profitably.
- Unlimited opportunities for generating passive income from renting apartments. Rental costs are rising alongside property values.
In the city, you can purchase both ready and under-construction properties. Investing in projects at the excavation stage is even more profitable as by the time of completion, the residences appreciate in value. This strategy can be utilised for short-term investments.
Conclusion
The Boca Raton real estate market is on the rise. Analysts predict a rise in house prices in Miami by at least 7.4% over the next year. Meanwhile, the median ratio of the price paid by the buyer to the initial price is 0.97, meaning homes are selling almost at the listed prices. As of now, there is no reason to believe that housing in the city will start to depreciate. With the influx of expats, prices will only increase, so in the long run, investments in real estate in Boca Raton will fully justify themselves.