Real Estate 101RentalScaling Your Portfolio

Gainesville Offers Opportunity for Investing

Building to Meet Demand in Gainesville, Florida

There are hot real estate markets, and then there is Florida, which is consistently one of the most popular states for real estate investing. Miami, Jacksonville, and Orlando rank among the top cities for Florida real estate investments, but Gainesville is making its way up that list.

Florida was one of the first areas hit by the Great Recession in 2008. Many areas of the state – including Gainesville – experienced a record number of foreclosures and short sales, erasing years of built-up equity overnight.

Fast forward five years or so after the Great Recession. The Gainesville housing market had stabilized and was showing strong signs of growth. Steady gains over the last three years have led to strong optimism that the Gainesville real estate market may have finally turned a corner.

The Gainesville, Florida housing market is very competitive. The average sale price of a home in Gainesville was $295,000 in August 2022 – up 20.4% YOY, according to Redfin data. On average, homes in Gainesville sold after 13 days on the market – down from 49 in 2021.

Even though Gainesville’s average home price falls below the national average, the rising averages are pricing out potential local homebuyers, which has helped create a thriving rental market and opportunity for rental property investing.

Gainesville's Strong Rental Market

Gainesville is home to four prominent colleges and universities, including the University of Florida. The university is the city’s largest employer and enrolls about 57,000 students a year.

The university is also the city's primary economic engine, attracting nearly 200 high-growth enterprises and startups to the area. That means this college town offers a great opportunity for investing in rental properties in Gainesville.

Rent-occupied households account for 61% of the housing population in Gainesville. Paying rent in Gainesville isn’t as expensive as other Florida cities. The average monthly rent in Gainesville is $1,567 – below the national average of $1,900.

Another piece that those who want to invest in Florida real estate to consider, is that due to its never-ending influx of new students, there is strong demand for rental properties, both short- and long-term.

Students and UF staff are a prime market to target when it comes to long-term rental investments, visiting parents and fans of the university’s sports teams being key when it comes to short-term rental properties.

Florida hasn’t been immune to the housing inventory shortage common across the U.S. To address this need, investors are turning to build to rent communities and investing in new construction projects aimed at creating multifamily housing.

Three different apartment complexes are under construction in Gainesville, which is projected to create 400 housing units—always in demand in a student housing-focused environment.

An Investor’s Guide to Gainesville, FL

Gainesville’s rental and new construction markets have come together to create great opportunities for real estate investors.

For investors looking to build income and rental properties in Gainesville, Lima One’s new construction loans and rental property loans are a great way to build their real estate investment portfolios.

If you’re an investor interested in new construction loans in Florida, Lima One Capital is the private lending partner you need.

Lima One is the premier lender for real estate investors in Florida and across the country.

As experienced hard money lenders in the private lending space, we’re able to help you find the loans that fit your investment strategy, while providing you with best-in-class customer service.

Contact us today to discuss your next deal, or if you have a deal in hand, speed up the process by applying now.