Melbourne Investment Property for Sale - 2023 Rental Home Appreciation
The Melbourne real estate market is heating up very quickly. Location, high demand, and high property value appreciation create a lot of competition in the Melbourne market. It keeps real estate agents busy and pricing some first-time homebuyers out. But don't let that dismay you. Melbourne is still more affordable than Miami, another hot South Florida market.
Real estate investors interested in adding a South Florida home to their property portfolio should consider Melbourne.
Melbourne's Attractive Housing Market
Did you know there's more than one Melbourne? It's true. Most people think of the one located in the Australian state of Victoria. But there's also one in Florida that's arguably just as amazing as its namesake down under.
Melbourne is located on Florida's Space Coast. The Melbourne area is home to the Kennedy Space Center and Cape Canaveral Air Force Center. It's where NASA and SpaceX launch most of their shuttles and satellites.
Real estate investors can find nearly every property type in Melbourne's property market. They include everything from condos and townhouses to single-family homes.
The Melbourne area is home to some of the best suburbs for real estate investors to consider. They include Cape Canaveral, Cocoa Beach, Palm Bay, Palm Shores, and Titusville.
- Cape Canaveral: Cape Canaveral is located 26 miles north of Melbourne along US-1. It's home to the Kennedy Space Center and beautiful beaches. The median listing price in Cape Canaveral is $290/sqft, and the median house price is $349,950. The median rent is $2,200/month.
- Cocoa Beach: Cocoa Beach is located 20 miles north of Melbourne along US-1, just south of Cape Canaveral. It's famous for its beaches and surfing. The median listing price in Cocoa Beach is $393/sqft, and the median house price is $585,000. The median rent is $2,900/month.
- Palm Bay: Palm Bay is located 4 miles south of Melbourne along US-1. It's an excellent place for outdoor enthusiasts because of its many parks, nature preserves, and kayaking destinations. The median listing price in Palm Bay is $197/sqft, and the median house price is $350,000. The median rent is $2,200/month.
- Palm Shores: Palm Shores is located 9 miles north of Melbourne along US-1. It's surrounded by water on three sides and is known for its gorgeous water views. The median listing price in Palm Shores is $218/sqft, and the median house price is $435,000. The median rent is $2,195/month.
- Titusville: Titusville is located 40 miles north of Melbourne along US-1. It's the seat of Brevard County and is a down-to-earth city that's great for families. The median listing price in Titusville is $200/sqft, and the median house price is $299,000. The median rent is $1,7300/month.
Other hotspots worth noting are Merritt Island, Florida's largest island and home to the Kennedy Space Center; Satellite Beach, famous for its sandy beaches as blue water; and West Melbourne, home to Erna Nixon park. Whatever type of property you're looking to invest in, Melbourne suburbs have something for everyone.
Rental Home Appreciation in Melbourne
Melbourne has a solid rental market with demand for long-term and short-term vacation rentals. Nearly half (42%) of households are renter-occupied, 55% are owner-occupied, and the city has a 7% vacancy rate.
According to Realtor, the median listing price in Melbourne is $232 per square foot, with a median house price of $424,950. Zillow's Home Value Index reports a whopping 31.6% change in property prices since last year. That's impressive capital growth. The median rent in Melbourne is $2,150 per month.
Melbourne's vacation rental market is also strong. According to AirDNA, Melbourne has an Airbnb occupancy rate that averages around 75%. The average daily rate for a short-term vacation rental is $168, and hosts generate an average of just over $2,700 a month in rental income.
Melbourne's demand for long- and short-term rentals, combined with its very high home value appreciation, create great opportunities for home buyers, property investors, and property management companies to earn good rental yield.
Economic Growth in Melbourne
Melbourne is the second largest city in Brevard County, Florida, and it's only getting bigger. Melbourne has a population growth rate of 0.51% each year. The main drivers for its growth are location and job opportunities. Melbourne is located between Orlando and West Palm Beach on Florida's Space Coast, a hub for the nation's aerospace industry.
Melbourne's primary industries are retail trade, healthcare, tourism, and manufacturing. The largest employers are L3Harris Technologies, Holmes Regional Medical Center, and Brevard County Public Schools. Melbourne is also considered a hub for high-tech and aerospace employers. They include Northrop Grumman, GE, and Collins Aerospace. These employers provide well-paying jobs that fuel the city's economy and growth. In fact, Melbourne has an unemployment rate of just 2.5%.
The Melbourne real estate market offers homebuyers and real estate investors growth, demand, very high property value appreciation, and a stable economy. They combine to create a tremendous investment opportunity.
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