As housing prices continue to increase, finding the ideal investment property can be challenging. According Redfin’s July data, housing prices across the U.S. were up 4.1% annually, with a median selling price of $439,455. If you’re looking to invest in property or have been trying to decide which area to consider, you may be looking at locations with beaches to capture the tourist crowd.
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GOBankingRates spoke with two real estate investors to find out which beach towns are worth checking out.
Pensacola Beach, Florida
“Pensacola reported more than 2.5 million tourists visited in 2022,” said Mitch Provosty, a real estate expert with over thirty years of experience in the commercial real estate industry as an investor, developer, advisor and general contractor, and now CFO of RREAF Holdings. “With its white sand beaches and clear water, it ranks high, with travel agencies coming in at No. 4 in the Trip Advisors list of the Best Beaches in the Country during 2020.”
Provosty noted that the University of West Florida in northeast Pensacola and Pensacola State College attract thousands of students, which benefits the rental market. He also mentioned that the downtown area is full of restaurants, outdoor gym facilities and family activities, making it a prime location for vacation rental properties.
What’s the Average Home Price?
Provosty pointed out that Pensacola is one of Florida’s most affordable beach towns. According to Forbes Advisor, the median home price in Florida is $402,000, while Zillow lists the average home price in Pensacola at $268,099.
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Panama City Beach, Florida
“With many companies moving to remote work during the pandemic, Panama City Beach became a great place for the WFH crowd to relocate,” Provosty said. “More than 17 million people visit every year, bringing in roughly $2.7 billion in economic impact.”
Provosty pointed out that the mayor of Panama City Beach is working towards keeping residents and tourists happy by investing in new infrastructure, as the population has grown by about 40% since the start of the pandemic. As an investor, the population growth and funds allocated towards new infrastructure make this beach town an attractive investment option.
Provosty also brought up the 27 miles of white sand beaches with dozens of public peaches, the access to the Gulf of Mexico and the consistently warm weather as additional reasons for selecting this town.
What’s the Average Home Price?
According to Zillow, the average home price in Panama City Beach is $443,964.
Galveston Island, Texas
“Galveston Island hosted 8.1 million visitors in 2022, which is projected to grow in future years because of historic investments in re-nourished beaches, continued expansion/diversification of amenities and attractions located on Galveston Island, and continued growth in the number of year-round festivals, special events and sporting events,” Provosty said.
Provosty pointed out that this beach town is worth investing in because the Port of Galveston is North America’s fourth busiest cruise port, serving Carnival Cruise Lines, Royal Caribbean International and Disney Cruises, with over 1.7 million passengers annually.
What’s the Average Home Price?
According to Zillow, Galveston’s average home price is $353,577. However, in areas like Grand Beach, beachfront properties can cost anywhere from $245,000 to $3 million.
Myrtle Beach, South Carolina
“The tourism industry is the primary pillar of Myrtle Beach’s economic base, though the area has numerous other growth sectors, including healthcare, aviation, technology and manufacturing,” said Provosty. “Over 17 million people visit Myrtle Beach annually, partly drawn by the 60 miles of wide, sandy beaches and family attractions.”
Myrtle Beach is known as the “Golf Capital of the World,” and the area is supported by one of the best small airports in the country. According to USA Today, the Myrtle Beach International Airport is ranked one of the fastest growing, and passengers praise the convenient location.
What’s the Average Home Price?
According to Zillow, the average home price in Myrtle Beach is $307,574. However, beachfront properties can cost up to $5 million.
San Diego
“We have such a strong job market and diverse economy, and there’s such a strong demand for housing in California as a whole,” said Phil Green, the CEO of I Buy SD, a privately held single-family homebuyer in San Diego. “Almost anyone can find success here with a little can-do attitude in their respective fields.”
Green pointed out that San Diego stands out for its booming economy and ideal year-round climate. While this beach town is more expensive than the others on the list, it’s a solid option for those looking into the West Coast.
Green added, “Based on the economy alone, San Diego is a solid investment for any young business professional who wants to keep as many options open as possible.”
What’s the Average Home Price?
The average price of a San Diego home is around $1 million, according to Zillow, and Green noted that homes are showing no sign of depreciation.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Investor: Here Are the 5 Beach Towns You Should Consider Investing in Property
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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