The Pros and Cons of Owning Real Estate in the Florida Keys


Florida Keys real estate
Aerial view of the cruise ship pier, the adjacent marina and commercial center with the city of Key West, Florida in the background

Florida Keys Real Estate

Located south of Miami, the Florida Keys are a coral cay archipelago sitting just off of Florida’s

southern coast. Known for its gorgeous beaches, laidback lifestyle, and rich ecological diversity,

it’s a top vacation destination in the country.

But what makes people here turn from tourists to homeowners? Here are 3 reasons why many

property investors want to own Florida Keys real estate (as well as 2 reasons why you should

give it careful consideration):

PRO: It’s a lucrative investment

One of the best ways to grow wealth and have an alternative income stream is by owning a

vacation rental. In a tourist hotspot like the Florida Keys, renting out a vacation property will

not only help you cover your monthly mortgage, but it can also provide you with a consistent

cash flow.

The biggest risk you can face as a vacation rental owner is having your property sit empty for

long periods of time. But in the Florida Keys, with the right marketing, you’re less likely to be

affected by high vacancy levels. With its tropical climate and year-round fishing and diving

activities, you can expect a steady stream of tenants in every season.

CON: It may not be appealing to those who don’t like tourist crowds

What makes visitors from all over the world flock to the Florida Keys is the abundance of

nature-centric activities, from scuba diving to bird watching. But those looking for metropolitan

comforts and conveniences, like malls and movie theaters, might struggle to find engaging

activities.

PRO: It offers a starting point for many outdoor adventures

Home to over 1,700 islands, the Florida Keys offer outdoor enthusiasts a wide range of places

to explore. You can kayak around the islands’ nature tidal creeks, hike along the Great Florida

Birding and Wildlife Trail, or go scuba diving and explore the US’ only living coral barrier reef.

Owning a home in this area will cut down on hotel and accommodation costs. Moreover, you’re

almost always guaranteed to live near or at the beach. The location of the island chain also

ensures that homeowners can witness a beautiful beach sunrise and sunset everyday.

CON: It has a relatively high cost of living

While the Florida Keys isn’t the most expensive real estate market in the state, living in an

island paradise can still come at a cost. Its natural beauty and beachfront access makes it a

choice location for numerous luxury estates and condos. Bear in mind that less than 10% of the

archipelago is inhabitable, which puts land at a premium. Key Largo, for example, has a median

listing home price of nearly $1.5 million (as of January 2023).

The cost of living in the Florida Keys can be expensive as well. Because of the limited routes to

the islands, there tends to be additional transportation costs for commodities such as food. The

location and climate of the Florida Keys also make homes susceptible to damage due to the

climate, inclement weather, and wild animals, which can add to your usual maintenance and

repair costs.

PRO: Ensure your money holds value over time

Investing in Florida Keys real estate is a great way to grow wealth and add diversity to your

portfolio. Whether you want to generate an income stream by managing it as a rental, use it as

your own personal vacation home, or save it for retirement, your property is likely to appreciate

in value over time.

The Florida Keys have a strict growth and development ordinance for residential and

non-residential properties. This is critical in keeping the local housing market stable and

insulated from major housing trends that are affecting the rest of the country, which, in turn,

protects your hard-earned investment.


albert kelly

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