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Whether it is for vacation, work, or something more permanent, people love to be in Florida.
Perhaps, it is because of the beautiful weather that exists year round in the state. But, there is more to Florida than the weather and beaches.
Florida has a number of economic sectors that make the state appealing for job-seekers. Tourism, construction, real estate, aerospace, and agriculture are a few of the industries that are truly thriving in the Sunshine State.
Florida’s GDP makes it the fourth largest economy in the United States. Florida is only one of seven states in the U.S. that does not impose a personal income tax.
So, Florida is a lot more than just a warm-weather vacation destination. The Sunshine State is a place where ambitious people can start a career and settle down.
Choosing what state to live in can be incredibly stressful. Choosing a specific town or city within a state is even harder.
LendEDU has some good news for those people looking to buy a home in Florida. We have put together a list of the 100 best places to purchase a house in the Sunshine State.
Using licensed data, we evaluated hundreds of Florida towns and cities according to parameters deemed important for homebuyers.
The three parameters were as follows:
- Home Income to Home Value Ratio Score (40 points, listed in table as Value)
- Five-Year Population Forecast Score (40 points, listed in table as Population)
- Five-Year Income Forecast Score (20 points, listed in table as Income)
These parameters were chosen because they can have a dramatic impact on the investment a consumer makes when they purchase a house. First, you want to be able to get good value on a home relative to your income. Second, you want to move to a place that is expected to grow in population so the demand goes up. Third, you should purchase a house in a place that is forecasted to see income growth so that affluence drives up property value.
The 100 Florida towns featured below are the best places in the entire state to buy a home and will give potential homebuyers the most return on their real estate investment.
Ranking the Best Places to Buy a Home in Florida
All data used in this study is under license from Onboard Informatics. All data including the metrics and location names were broken down by ZIP Code initially, but these metrics were eventually aggregated according to their respective town and city name. Data for cities and towns with multiple ZIP codes were averaged together and weighted by population. LendEDU was left with hundreds of Florida cities and towns. A population cutoff was established at 3,000, and any town with a population below 3,000 was eliminated from further analysis.
Home Income to Home Value Ratio Score (40 points maximum)
The first parameter we judged was named the ‘Home Income to Home Value Ratio Score.” This score was determined by dividing the median household income by median household value in a given area. The value ratios were ranked against each other on a percent scale of 0 to 100 percent. Each individual percent rank was multiplied by its weight (40 percent) to produce the value score. The maximum possible value score was 40 points. This score represented the value a town’s residents could expect from a typical home purchase relative to typical income in the area.
Five-Year Population Forecast Score (40 points maximum)
The second parameter, Five-Year Population Forecast Score, was calculated using the current population and five-year projected population figures. Onboard Informatics’ dataset presented the forecasted population growth in a respective town over the next five years. A percent change equation was used to figure out the percent increase or decrease in population in five years. Each individual percent change was ranked on a percent scale from 0 to 100 against the field. Each percent rank was multiplied by its weight (40 percent) to produce the Five-Year Population Forecast Score. The maximum value score for this parameter was 40 points.
Five-Year Income Forecast Score (20 points maximum)
The third and final parameter was the Five-Year Income Forecast Score. This score was determined by using the median household income and the five-year median household income projection. Similar to the population projections, Onboard Informatics has data for the projected growth in income over the next five years in a given town. A percent change equation was used to determine the percent increase or decrease in income in the next five years for each city and town. The values were ranked against each other on a percent scale from 0 to 100 percent. Each individual percent rank was multiplied by its weight (20 percent) to produce the Five-Year Income Forecast Score. The maximum value for this score was 20 points.
After each and every town and city in Florida was given a score for each parameter, the parameter scores were summed together to get the final score. A score closer to 100 was more favorable. The 100 cities and towns that recorded the highest final scores were the ones included in this report.
See more of LendEDU’s Research
Author: Mike Brown