Investing in Sarasota Real Estate: Complete Guide for 2022

With nearly 1,000 people moving to Florida every day, it should come as no surprise that real estate markets across the state are booming. Take the Sarasota market, for example; that’s up over 30% year-over-year. However, this is just one small aspect of the Sarasota real estate market.

Vaster is here to tell you everything you need to know about investing in this lucrative market:

What You Need To Know About Sarasota

If you’re new to the Sarasota area, here’s everything you need to know about the county and the city itself:

Sarasota is both a city and a county located in southwest Florida on the Gulf Coast — south of Tampa Bay and north of Fort Myers.
As of the 2020 US Census, Sarasota County had a population of 434,006, and Sarasota City had a population of 54,842, representing increases of 14.4% and 5.6%, respectively.
Sarasota County consists of three main cities. The largest is Sarasota City which serves as the county seat — in addition to North Port and Venice. Other notable census-designated places and unincorporated communities include Englewood, Lakewood Ranch, Nokomis, Plantation, and Siesta Key.
The median income for a household in Sarasota County was $41,957, and the median income for a family was $50,111. The per capita income for Sarasota County was $28,326.
The top private employers in Sarasota County include Sarasota Memorial Health Care System, PGT Innovations, Publix, Venice Regional Medical Center, and Sun Hydraulics.
Sarasota is home to several institutions of higher education, including New College of Florida, Keiser University Sarasota, State College of Florida Manatee-Sarasota, and University of South Florida Sarasota-Manatee.
Sarasota is also home to many tourist attractions, including but not limited to The John and Mable Ringling Museum of Art, Siesta Key Beach, Marie Selby Botanical Gardens, Lido Key Beach, Sarasota Jungle Gardens, and Ca’ d’Zan.

What You Need To Know About the Sarasota Real Estate Market

Within the city of Sarasota, the median listing home price is currently $525,000, the median sold home price is $460,000, and the median listing home price per square foot is $304. These prices are up 31.6% year-over-year.

This market is considered a strong seller’s market with a sale-to-list price ratio of 100.02% and a median market timeframe of 40 days. Right now, there are 2,046 homes for sale in the city of Sarasota, ranging in price from $6,500 to $23 million.

Within Sarasota County, the median listing home price is currently $475,000, the median sold home price is $435,000, and the median listing home price per square foot is $286. These prices are up 29.8% year-over-year.

This market is still considered a seller’s market, albeit slightly less so than the city of Sarasota, with a sale-to-list price ratio of 100% and a median market timeframe of 41 days. Right now, there are 5,662 homes for sale in Sarasota County, ranging in price from $5,900 to $23 million.

Should You Invest in the Sarasota Real Estate Market?

Now that you have a better understanding of Sarasota in general and the Sarasota real estate market specifically, is this a good area to invest in? Based on the huge population growth in Sarasota of nearly 15% and the boom in the real estate market of nearly 30% year-over-year, there’s no doubt that the Sarasota real estate market is ripe for investors.

Here’s what you need to know to make a smart investment in the Sarasota real estate market:

How Should You Invest in the Sarasota Real Estate Market?

There are many different ways to invest in the Sarasota real estate market. For example, you could invest in either residential real estate or commercial real estate. Within residential real estate, you could invest in single-family properties or multi-family properties. Within commercial real estate, you could invest in office, retail, industrial, land, or mixed-use.

Investing in Sarasota’s residential real estate market is particularly appealing as housing costs continue to rise, driving more people to rent rather than buy. Additionally, Sarasota is a hot tourist destination with some of the country’s best beaches, making it ideal for short-term vacation rentals as well.

When Should You Invest in the Sarasota Real Estate Market?

While it may be tempting to try to time the real estate market and get in at the best possible time, seasoned real estate experts know that time in the market is more valuable than timing the market. For this reason, the best time to invest in the Sarasota real estate market is right now.

Interest rates have increased significantly in the past few months, forcing many would-be buyers to the sidelines. Facing less competition, investors have a great opportunity to take advantage of prices that are expected to keep rising despite higher interest rates.

Due to the economic benefits of living in Florida (like a lack of state income tax), more people continue to move to the Sunshine State and Sarasota specifically in search of a better quality of life. Specifically, U.S News and World Report ranked Sarasota the best place for retirees to settle, largely thanks to sunny beaches, friendly population, and lack of state income tax.

This makes Florida's property more desirable than ever.

Where Should You Invest in the Sarasota Real Estate Market?

Sarasota is a large county that encompasses 725 square miles — featuring several cities and countless neighborhoods. So, where’s the best place to invest in the Sarasota real estate market? You don’t have to be an experienced real estate professional to know that location is everything when it comes to real estate.

Here are some of the best locations in Sarasota for real estate investors:

Avondale with a median property price of $225,450 and an average traditional cash-on-cash return of 4.76%.
Arlington Park with a median property price of $535,355 and an average traditional cash-on-cash return of 3.51%.
Park East with a median property price of $275,000 and an average Airbnb cash-on-cash return of 3.30%.
Alta Vista with a median property price of $807,000 and an average Airbnb cash-on-cash return of 2.00%.

Other Markets To Consider Investing in…

Florida is a large state with many lucrative real estate markets that are ripe for investment. In addition to Sarasota, here are five other Florida real estate markets you should consider investing in:

1. Miami

It’s no secret that the Miami real estate market is one of the hottest and most in-demand in the entire country. During the pandemic, Miami’s median rent price increased 58%, a notably higher number than the national 19.3% rent increase.

As a result, it’s going at the top of the list of markets you should consider investing in.

The median listing home price in Miami-Dade County is $499,000, the median sold home price is $467,000, and the median listing home price per square foot is $378. These prices are trending up 16% year-over-year. There are currently 14,587 homes for sale, and homes stay on the market for an average of 68 days.

2. Tampa

Tampa is another real estate market that has exploded in the post-COVID 19 world. Just north of Sarasota, Tampa has plenty to offer both residents and investors.

The median listing home price in Tampa is $388,800, the median sold home price is $380,000, and the median listing home price per square foot is $249. These prices are trending up 19.6% year-over-year.

There are currently 2,739 homes for sale in the city of Tampa and 6,232 homes for sale in all of Hillsborough County. The Tampa real estate market is quite competitive, with a sale-to-list price ratio of 100.03% and a median market timeframe of 40 days.

3. Orlando

Orlando isn’t just home to Disney World; it’s home to a booming metropolitan area that boasts countless attractions and investment opportunities.

The median listing home price in Orlando is $350,000, the median sold home price is $352,000, and the median listing home price per square foot is $219. These prices are trending up 20.7% year-over-year.

There are currently 3,123 homes for sale in the city of Orlando and 5,012 homes for sale in all of Orange County. The Orlando real estate market is one of the most competitive in the country, with a sale-to-list price ratio of 100.03% and a median market timeframe of just 39 days.

4. Jacksonville

If you’re looking for a more affordable real estate investment, look no further than Jacksonville. This market is seeing a lot of growth but is still less expensive than Tampa and Orlando.

For example, the median listing home price in Jacksonville is just $290,000, the median sold home price is $291,300, and the median listing home price per square foot is $182. These prices are trending up 20.8% year-over-year. There are currently 4,911 homes for sale in Jacksonville, with a sale-to-list price ratio of exactly 100% and a median market timeframe of 42 days.

5. Naples

On the other end of the spectrum is Naples, one of the most expensive real estate markets in Florida. However, it still presents a good value for investors.

The median listing home price in Naples is $660,000, the median sold home price is $598,500, and the median listing home price per square foot is $357. These prices are trending up a whopping 32.5% year-over-year. There are currently 4,682 homes for sale in Naples, with a sale-to-list price ratio of 100% and a median market timeframe of 52 days.

Final Thoughts on Investing in the Sarasota Real Estate Market

As you can see, the Sarasota real estate market is ripe for investment in both residential and commercial alike. No matter which area you’re interested in, Vaster can help make your real estate investment dreams a reality with our flexible loan products.

Reach out to one of our lending experts today for more information and to get started.

Sources:

Sarasota, FL Real Estate Market | Realtor.com

Realtor Association President Shares Insights on the Current Local Housing Market | Sarasota Magazine

Sarasota Housing Market Forecast 2022: Should You Invest? | Mashvisor

Miami Posts Biggest Two-Year Rent Spike in US | The Real Deal

What Makes Sarasota the Best Place to Retire in 2021-2022 | US News & World Report