The 2019 Ocala Real Estate Market first quarter numbers are in! In February, we discussed why Ocala’s Economy is On Fire. In this post, we summarize the first quarter numbers for Marion County real estate and forecast where the market might be headed this year (spoiler alert - buyers and investors, you’re going to like what you read!).
Buying and owning real estate is an investment strategy that can be both satisfying and
lucrative, especially when you invest in Ocala Real Estate.
Of course, an essential part of enjoying the benefits of real estate investing is
finding the correct location. There are many areas that are ripe for real estate investors to take
advantage of to reap future profits—one such place is Ocala, Florida.
Ocala is growing rapidly, as evidenced by Ocala ranking in the top ten of Uhauls annual
migration report, indicating Ocala has one the highest rate of people moving to the area. .
Though Ocala is not a coastal city, the residents still enjoy the nearby ocean with all the
benefits of an affordable suburb. This makes it great for real estate investing.
Between the rapid job growth, low cost of living, and relaxed Florida lifestyle, it’s no surprise
that people are moving to Ocala. If you’re looking to invest in Ocala Real Estate, we’ve
put together a list of the top 8 reasons why buying in Ocala is a wise investment strategy.
1. Stable Employment Base and Record Setting Job Growth
Smart Real Estate Investors seek areas of high, stable and diverse employment. Ocala is one
of only six metros of the 400 nationwide that had positive job growth in 2020. Ocala’s job
growth rate is higher than anywhere in the state of Florida. The city has added over 7,000
jobs in Trade, Transportation and Utilities, approximately 5,000 education and health services
jobs, with 18,000 jobs added overall. The current labor force in Ocala/Marion County is
108,000. The median household income in the area is just under $46,000 per year.
The biggest driver of job growth in the Ocala/Marion County area is an increase in the
number of distribution facilities added in the last five years. This includes FedEx employing
350 people, Chewy, who has hired some 300 people, AutoZone contracting 350
people. Amazon has also added 165 jobs to the area, while the chain discount store, Dollar
Tree, has employed over 700 people in the first stage of its expansion.
2. Centrally Located
One of the big reasons for this job growth is Ocala’s location in north central Florida. Ocala
is located on two major thoroughfares, I-75 running north and south and the Florida turnpike,
running Northwest to Southeast. Most significantly, the Florida turnpike originates in Miami
and terminates just south of Ocala. Commerce that flows into the port of Miami comes up
the turnpike and distributes out to the rest of the Country from Ocala. Three major cities are
within a one and a half or two hour drive: Tampa, Orlando, and Jacksonville. Ocala and
Tampa are 97 miles apart, while Orlando is 83 miles away. When you invest in Ocala real estate, You investment is in the center of it all.
3. Investing in Ocala Real Estate has a Low Cost of Entry
Compared to other Florida markets, such as Tampa, where the median home value is
$290,000, the Ocala housing market is pretty affordable for buyers. The median home price
in Ocala is around $188,000. You can purchase several homes in the Ocala FL real estate
market for the price you would pay for a mid-market condominium in Miami.
4. The Tax Climate
While you may be thinking of the warm climate typical to Florida, there is another type of
climate that’s right for investors. The tax climate! This is one reason retirees and workers
alike are attracted to the Ocala FL real estate market. Properties in areas with a high tax
burden, such as having a state income tax and high property taxes, negatively impact
investors as these costs reduce their annual income. This means there are lower yields in
these higher-taxed states.
Florida has no state income tax. The average property tax Florida residents pay is 1%, which
is well below the national average of 1.7%. Another excellent reason to invest in Ocala real estate.
5. Great Expected Return on your Ocala Real Estate Investment
A key when considering property location is the mid-to-long-term view regarding how the
area is expected to evolve over the investment period. The prices of homes in Ocala have
continued to rise, and the expectation is that this growth will continue with the development
in the area. Sale prices of existing single-family homes continue to escalate in Marion
County, with the average price in March 2021 climbing by 15.5% in one year, according to
numbers released by the Ocala/Marion County Association of Realtors.
6. High Demand for Rental Properties in Ocala
The advantages when you invest in Ocala Real Estate are becoming increasingly apparent
to individuals and companies. This has resulted in household formation and new residents
coming to the city, outnumbering new construction, implying that rental properties are in
high demand. Some families who are new to the city choose to rent first to feel out the area.
Others are ready to make a move to homeownership but are restricted by inventory.
7. Landlord-Friendly Laws
As a property owner, you want to have control over your investment. While you’re free to
buy property anywhere you chose, each state has its own set of landlord-tenant laws.
Generally, these laws favor tenants in many states. However, some states are friendlier to
landlords. Florida is considered one of the top 10 landlord-friendly states in the nation.
Florida evictions take around 30 days from start to finish, whereas in other states, evictions
can take months to years in some cases. Resolute Property Management can help with this process should an eviction become necessary
8. Retirees and Horses – Economic Undergirding
Since this is Florida, it should come as no surprise that retirees make up a sizable portion of
the rental market in Ocala. Renting for a few months while deciding where to live is an
option for retirees moving to Florida. In addition, retirees can rent homes and condos in the
Ocala real estate market as they look for their ideal retirement home. You can see our available rental properties here
This is particularly true for horse lovers who came to run a hobby farm or have a house with
a horse barn on the property. Ocala is a horse-lover’s dream, appealing to those who want to
ride their horses into town for errands and dine in their boots. The huge retiree market has the
added advantage of being resilient primarily to work market fluctuations; they can pay
As a result of The presence of both the retiree population as well as the equestrian community provides
additional support to Ocala’s economic health.
Final Words on investing in Ocala Real Estate
Buying an investment property is a big decision and requires careful thought and insight. The
right location can carry you one step closer to your goal of financial freedom. If you’d like to
get help from experts who understand the market when you invest in Ocala real estate, reach out today! Our expert staff are available to answer all of your questions. We are here to help you achieve success!