Spanning hundreds of miles along the Atlantic Ocean and the Gulf of Mexico (recently renamed the Gulf of America by President Trump), you’ll find some of Florida’s world-famous beaches that welcome over 140 million tourists yearly and attract residents and retirees alike to plant roots in the southern state.
With its sunny climate, endless activities, and no state tax, Florida is a desirable destination to live, but Yawar Charlie, a senior real estate agent, director of Aaron Kirman Group’s estates division and a cast member of CNBC’s “Listing Impossible” warns to think twice before buying property. “When it comes to real estate, not every sunny spot in the Sunshine State is a wise investment,” he told GOBankingRates.
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“Investing in real estate is about more than just sunshine and palm trees. It’s crucial to look at economic stability, growth potential, and environmental risks.” Charlie explained, “Before you get swept up by the allure of Florida’s warm weather, make sure you’re also considering the financial forecast. Being well-informed and strategic will help you spot the true gems in the market!”
Although the luxury real estate agent is located in Los Angeles, his significant crossover client base between California and Florida keeps him well-versed in both markets.
He shared the five cities in Florida to hold off on buying property in the next five years and why.
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Miami Beach
Known for its pristine beaches, lively nightlife and world-class dining, Miami Beach might be a great vacation or wild Spring Break hotspot, but according to Charlie, this is one place to avoid buying property.
“Yes, Miami Beach is glamorous, but the rising sea levels and increasing frequency of hurricanes pose significant risks,” he stated. “The cost of insuring properties is soaring, and the potential for long-term value depreciation is real. It’s like buying a beautiful beachfront home with a ticking time bomb in the basement.”
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Daytona Beach
Another popular spot in Florida is Daytona Beach, which has 23 miles of white-sand beaches perfect for surfing, swimming, windsurfing and kayaking. Plus it’s affordable, but don’t let its beauty and low cost of living entice you to invest.
“While it may be famous for its speedway, Daytona Beach struggles with economic stagnation and high crime rates,” Charlie explained. One in 28 people has a chance of becoming a victim of a violent or property crime, per Neighborhood Scout.
In addition, “The real estate market has been sluggish, and without major economic development, property values are likely to remain flat,” Charlie said. “Investing here might leave you feeling stuck in the pit stop.”
Fort Myers
Fort Myers is another beautiful spot for enjoying the beach and relaxing, but Charlie advised against investing there.
“Despite its appeal to retirees, Fort Myers faces issues with overdevelopment and environmental concerns, particularly regarding water quality,” he shared. “The housing market has been volatile, and long-term growth prospects are uncertain. It’s a bit like buying a flashy car that might just run out of gas.”
Pensacola
Pensacola’s picture-perfect turquoise and sparkly white sandy beaches are the ultimate escape, but Charlie warned homebuyers to stay away.
“This city has faced economic challenges and limited job growth, which impacts the housing market,” he said. “High crime rates and a lack of new development projects make it less appealing to investors.”
According to Neighborhood Scout, crime is 86% higher than in other cities in the state and 1 in 33 people have the chance of becoming a victim of a violent or property crime.
“Investing here could feel like trying to catch a wave in a kiddie pool,” Charlie stated.
Ocala
Ocala is a pretty, clean and budget-friendly city, but watch your wallet. “Ocala has one of the highest crime rates in America compared to all communities of all sizes — from the smallest towns to the very largest cities,” per Neighborhood Scout.
And according to Charlie, there are other reasons to be concerned.
“While affordable, Ocala’s real estate market is hindered by slow economic growth and limited amenities,” he said. “The area is heavily reliant on agriculture, which can be volatile. It’s a quiet town, but that tranquility might come at the cost of your investment’s growth. Think of it as putting your money into a time capsule with no guarantee of future rewards.”
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This article originally appeared on GOBankingRates.com: 5 Worst Florida Cities To Buy Property in the Next 5 Years, According to Real Estate Agents
