You have made the decision to invest in the Florida real estate market, but it seems that everything you read focuses on condos in Miami or vacation homes in Orlando. What about raw land in Florida? You just want someone to give you straight information regarding where land values are low, which counties have the highest potential for growth, and where your investment won’t be affected by flooding or unreasonable regulations.
The issue is that most investors are investing only in commercial and residential properties, so land buyers can be left trying to figure it all out themselves. You will have to compete with developers who are already established in the area and have a good grasp of the local market, while also trying to figure out what local zoning ordinances say and what future land uses may be. At the same time, coastal land is being impacted by rising sea levels, and prices continue to increase significantly in high-demand areas, thus hurting the return on your investment.
The best way to buy land in the state of Florida is to understand population trends in growing areas, as well as develop infrastructure in those areas that provides actual value. This guide presents you with an analysis of the actual counties in Florida where land is a good investment site—not just what you’ll find in “tourist brochures” or “generic real estate advice”.
Understanding Florida’s Real Estate Market
The real estate market in the state of Florida encompasses a wide variety of geographical areas and types of investment opportunities. Beachfront properties and tourism are found along the Gulf Coast, while retirees and snowbirds tend to gravitate toward Southwest Florida. North Central Florida has rural land available for farming and agricultural purposes.
Diverse Real Estate Market
Florida’s real estate market spans drastically different regions. The Gulf Coast offers beach proximity and tourism appeal. Southwest Florida attracts retirees and winter residents. North Central Florida provides agricultural land and rural opportunities.
With many people moving into northern Florida as a result of an increase in population coming from Georgia, you will be able to find properties to invest in, no matter what kind of investment properties you prefer.
The state has created a business-friendly climate that supports growth and development. Because there are no personal income taxes in Florida, both wealthier individuals and businesses flock to the state, which contributes to continued and steady population growth that outpaces all other states’ populations combined. More people = more demand for housing and therefore, more land development.
Tourism Impact on Land Values
Across Florida, the tourism sector has an effect on land value, but this effect is not equally distributed. For example, properties in tourist hotspots such as Key West or Fort Myers will have a higher price point than comparable properties just one hour’s drive from a major tourist destination, where the price of land is much more reasonable but still benefits from the effects of tourism.
Investing in real estate near expanding tourist regions can have a positive return on investment as infrastructure begins its expansion from the rural to the urban, with roads, utilities, and services moving according to where tourists spend their money, which eventually reaches out to include many areas that were once considered rural, and thus increase both the value of these properties and the amount of tourism.
Top Counties for Land Investment in Florida
The top five counties in Florida to purchase land fall under affordability criteria, expected future expansion/price appreciation, and basic property fundamental characteristics, leading to long-term investing profitability.
Putnam County
Putnam County is one of the best choices for land buyers wanting rural land that will appreciate going forward.
Why Putnam County Works:
- Lower land prices than coastal counties (often 50-70% less)
- Population growth from Jacksonville and St. Augustine expansion
- Access to St. Johns River for water recreation
- Agricultural land opportunities with favorable tax treatment
- Improving infrastructure as development spreads westward
- Building permits increasing annually (sign of coming growth)
All of Putnam County is close enough to Jacksonville (45-60 minutes) that people commute there, but far enough away that prices remain affordable. As Jacksonville continues its growth, so does Putnam County (it will be the next growth ring). In Putnam County, rural land is priced from $2,000-$8,000 per acre, while closer-in, to Jacksonville, it is priced at $20,000 or more per acre.
Polk County
Polk County, located in Southwest Florida, has a central location between Tampa and Orlando and offers strong fundamentals for land appreciation.
Polk County Investment Advantages:
| Factor | Details |
|---|---|
| Population growth | Growing 2%+ annually |
| Job growth | Distribution centers, manufacturing expanding |
| Infrastructure | I-4 corridor development |
| Land prices | $5,000-$15,000/acre rural |
| Development | Residential and commercial properties increasing |
| Water access | Multiple lakes for recreation |
Polk County is experiencing evident overflow growth from Tampa and Orlando, benefiting greatly from the excellent central location, which helps spur job creation and thus housing and land development needs. As a result, real estate investors who buy land today are taking advantage of being able to position themselves on the curve of future expansion.
Bay County
Bay County is on the Gulf Coast with access to good beach properties and a lower cost per square foot than other popular coastal counties.
Bay County Highlights:
- Gulf Coast access without Miami or Naples pricing
- Panama City Beach tourism spillover
- Military presence (Tyndall Air Force Base) providing economic stability
- Hurricane Michael (2018) recovery driving construction boom
- Building permits and development accelerating
- Rental properties market strong from tourism and military
Hurricane destruction will provide new infrastructure and stricter building codes for future construction; as a result, these newly created structures will be of higher quality. For instance, Florida’s previously unscathed land is now strategically positioned in highly desirable locations.
Real estate prices will vary according to distance from the coastline and proximity to other needed facilities. The average cost to purchase land is within the range of $8,000 to $20,000, depending on both distance from the ocean and amenities available in the area.
Brevard County
As the site of Cape Canaveral and the Space Coast, Brevard County is an attractive real estate investment option within the context of growing opportunities due to the aerospace industry.
Brevard County Investment Drivers:
- Space industry expansion (SpaceX, Blue Origin, NASA)
- Job growth in high-paying technical fields
- Gulf Coast and Atlantic Ocean access
- Less expensive than South Florida coastal counties
- Growing retiree population
- Rental demand from aerospace contractors and tourists
A broad mix of tourism, aerospace, and retiree populations within Brevard provides ample economic support for real estate value in the county. Depending upon location, land buyers will find land sales ranging from $10,000-$30,000 per acre. With the growing aerospace industry, particularly utilized in the inland part of the county, workers will especially look for affordable housing to rent/buy.
Charlotte County
Charlotte County, in Southwest Florida, has coastal appeal but is more affordable than the counties of Sarasota and Naples to the south.
Charlotte County Benefits:
- Gulf Coast beaches and serene coastal retreats
- Lower land prices than neighboring Sarasota County
- Strong retiree migration
- Rental properties market supported by seasonal residents
- Infrastructure improvements ongoing
- Population growth from northern state migration
Charlotte County is appealing to retirees seeking inexpensive access to the Gulf Coast while also offering affordable housing developments, which will continue to create a steady demand for housing development, therefore driving the need for buildable lots. Commercial properties and services will follow the expansion of residential developments and will ultimately produce increased value on a commercial basis over time.
Factors to Consider When Buying Land
When purchasing property in any Florida county, one must evaluate different criteria; those criteria will directly impact the ability to use that land immediately, as well as affect the overall value over the long term.
Location and Accessibility
The best rule of thumb when it comes to buying property is that location matters most. Buying property 60 to 90 minutes from larger cities will ultimately allow you to take advantage of expansion, but you won’t pay urban prices. Make sure you also check the road access, and while dirt roads are perfectly acceptable, you will need legal access to the property.
Economic Fundamentals
Economic and job creation increase population, thus supporting a demand for real estate. Look at the employment trends of counties, major employers, and planned developments in the area. Counties that are adding distribution centers, manufacturing jobs, and tech companies have better fundamentals than those based solely on tourism or agriculture.
Neighborhoods and Development Patterns
Even the rural land of Florida has an identity, so make sure you visit the same location at different times to see the community. Also, contact residents to get their opinions regarding their community. Finally, research your county or city’s future land use map, which will tell you where development is going. Finding yourself in the path of growth is a lot better than waiting for growth to find you.
Job Market and Job Growth
Real estate investors occasionally forget that rentals and development require tenants and buyers who possess jobs. The counties that possess diversified jobs and are continuously growing in jobs will tend to have a stronger relationship with real estate investment than those counties with only one type of job or industry, which makes them susceptible to the downturns of the economy.
Cost of Living and Taxes
Florida’s no personal income tax helps, but property taxes vary by county. Compare millage rates and assess practices. Some counties have higher rates but better services. Calculate total ownership costs including insurance, which varies dramatically based on hurricane risk and flood zones.
While there’s no individual state income tax in Florida, different counties have different property tax rates (millage rates) and different appraisal practices. The county with the highest property tax rate may have the most and/or the best services available compared to counties with lower property tax rates.
You will need to calculate the total cost of ownership for the property, including homeowners’ insurance (note: the cost of insurance varies widely due to hurricane risk and flood insurance zones).
Zoning Regulations and Building Permits
Local zoning laws determine what you can actually do with land in Florida. Agricultural zoning might prevent subdivision. Residential might prohibit commercial use. Before buying land, verify zoning allows your intended use and research building permits, requirements, and costs.
The use of your property is subject to local zoning laws. Depending on how your property is zoned, you may not be able to subdivide or develop your property for commercial purposes. It is important that you verify your property has an acceptable zoning designation for the use you intend and you research building permit requirements and costs before purchasing any property.
Market Conditions and Trends
Market trends reveal which Florida counties are heating up versus cooling down. Look at:
- Building permits issued (increasing or decreasing?)
- Average price per acre over past 3-5 years
- Days on market for land sales
- Percentage of cash vs. financed purchases
- Infrastructure bond issues and road projects
Potential Returns from Florida’s Real Estate
Knowing how much potential return you may expect from investing in Florida real estate land allows you to make informed decisions about adding real estate land investments to your portfolio, especially if you do not live in Florida.
Rental Properties Income
Florida’s raw land does not provide rental income right away, but you can eventually turn your vacant land into income-producing real estate. Farmers may be able to lease vacant agricultural land; in urban areas, vacant, cleared land can be rented out for storage of recreational vehicles, etc. Additionally, camping and event use may be permitted under local and/or state regulations regarding short-term rentals of your vacant land to other individuals.
Appreciation Potential
Historically, the appreciation rate of land prices in growth corridors is between (5 -10%) per annum, with an increase during development booms. The future value of land depends upon how quickly the area grows. Real estate investing – buying land before infrastructure is completed will appreciate the most quickly.
Cash Return Through Development
With skill, land buyers can subdivide larger parcels and develop roads and/or utilities to build improved lots that will provide substantial profit on investment. This requires substantial capital and experience; however, it will yield a higher return than holding undeveloped (raw) land.
Passive Income Strategies
Passive approaches include:
- Buy and hold for appreciation
- Lease for agriculture or grazing
- Solar farm leases in sunny Florida
- Billboard leases along highways
- Cell tower leases in underserved areas
Investing in Land vs. Properties in Florida
Land in Florida has different benefits than developed residential and commercial property.
Finite Resource Advantage
Florida is not gaining any land (is losing some due to rising water levels); the population keeps growing. Long term, there is a mismatch between the number of people wanting to buy land and the amount of land for sale. While commercial buildings and rental properties can be constructed anywhere, there is only so much prime land available.
Lower Entry Costs and Immediate Income Trade-off
In contrast to the expense of investing in a building/structure, land purchases require less capital; however, raw land will not produce any immediate income compared to rental property. As a result, purchasing land is an ideal investment for someone with a long-term investment horizon who is willing to wait until land appreciates in price.
Affordability Compared to Developed Properties
Land prices in rural counties in Florida can be as low as $2,000 to $5,000 per acre, whereas the minimum price for a residential or commercial property is $100,000 or more, with many properties costing hundreds of thousands of dollars. With owner financing available, you can purchase land and have monthly payments of less than $100, making it possible for almost anyone to own land.
Maximizing Returns Through Strategic Selection
The best opportunity to maximize your real estate investment return occurs when you purchase land in Florida’s highest-growth counties before the rest of the world catches on. Start by researching demographic and population growth statistics, as well as planned infrastructure improvements and future development patterns, so that you can strategically position your purchase in the direction of anticipated metropolitan expansion from other major metropolitan areas.
Florida real estate investors who purchase affordable land that is positioned along Florida’s growth corridors will see the greatest returns. This includes counties such as Putnam, Polk, Bay, Brevard, and Charlotte, where the fundamentals indicate appreciation is forthcoming while property values continue to remain low.
Making Your Florida Land Investment
For land buyers who conduct the necessary research, the state of Florida has promising land purchase opportunities. The state’s growing population, lack of state income tax, favorable business climate, and economically diverse industry make it an ideal place for land purchases to happen.
A further incentive to land buyers is that the demand for land in Florida is further bolstered by the tourism industry and the influx of retirees moving to Florida from other areas of the country.
With great owner financing options that start at $100 a month, a land buyer can invest in some other counties in Florida without needing substantial initial capital outlay. The growing economies in both Southwest Florida, North Central Florida, and Northern Florida will make extremely attractive developing properties in the future. Today’s relatively affordable rural property will be tomorrow’s very desirable, developed parcel of land.