St. Petersburg is one of the top real estate investment markets in the country, as the second largest city in the Tampa Bay metro area with a population of 254,000. Not only does St. Petersburg have a variety of potential real estate investment projects, neighboring communities such as Tampa and Clearwater add to the overall appeal of this coastal community.
So, here is a closer look at the top reasons for St. Petersburg’s hot real estate investing market.
Low Real Estate Prices and Rising Home Values
Currently, the median home price in St. Petersburg is at $149,300, which gives it a great deal of potential for investors when compared to the national median of $188,900 and the Florida state median of $175,300.
St. Petersburg also has a growing real estate market. Last year, median home values rose a staggering 13.4%, more than triple the national rate of growth of 4.3%. Next year, Zillow predicts that the median home price in St. Petersburg will rise another 3.3%, again outpacing national growth that is projected to hit 2.6% during that same period.
St. Petersburg, therefore, presents a great opportunity for real estate investors wanting to flip homes for a fast profit or generate cash flow with rental properties.
Tampa Bay and Population Dynamics
In recent years, Tampa Bay has seen tremendous population growth, and that growth is having a positive impact on the overall housing market.
As Tampa Bay continues to grow and develop into a global economic powerhouse, people will continue moving into the metro area. And as they do, home prices will continue to rise as housing demand outpaces supply in most Tampa Bay locations.
Compared to other Florida metro communities, Tampa Bay has a more diversified and stable economy, with a larger emphasis on industry compared to other metro areas like Orlando, which relies primarily on tourism. For real estate investors, this diversity is very important to stable real estate investment profits.
St. Petersburg has a remarkably diversified economy itself, apart from Tampa Bay. Of the top ten largest employers in the city, none is directly based around the tourism industry. What this means for St. Petersburg, like the rest of the Tampa Bay area, is that population growth is less likely to be impacted by negative economic fluctuations from tourism.
Real Estate Investment Opportunities in St. Petersburg
Since St. Petersburg is home to diverse industries, and a place where thousands of people want to live, there are a variety of property investment opportunities in the city.
For one, population dynamics make residential real estate investing very lucrative, especially with Tampa Bay’s reputation as one of the best places to invest in real estate. Population growth has been fueled in part by immigration, and many immigrants are in a better position to rent rather than own a home when first arriving in a city like St. Petersburg. So if you are seeking profitable residential rental investments, you should investigate St. Petersburg.
St. Petersburg’s diversified economy also means that there are a wide variety of different commercial projects. And, nearby beach access to the Gulf Coast makes St. Petersburg a favorite vacation destination for beach goers.
Overall, value priced homes, consistent growth, and a robust economy provide excellent opportunities for real estate investors in St. Petersburg.
Graystone Investment Group
Graystone Investment Group is an experienced Investment Group wholesaling properties in the Greater Tampa Bay market since 2005.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.