Panama City Beach Real Estate: Why You Need to Own a Piece

Are you interested in the Florida real estate market, but don’t know where to start? How about Panama City Beach real estate? Continue reading this blog to find out why this is the best place to buy vacation rental property.

Everyone in real estate investing is always chasing after the best real estate investments. Real estate investors are looking for investment properties that are sustainable, valuable, and profitable. Figuring out how to make these great investments could be tricky if you don’t know where to start. That’s why choosing a great real estate investment location is an important first step. We’re here to point you in the right direction. The right direction is Panama City Beach real estate. Let’s see what makes investment properties here so special.

Related: The 7 Best Places to Buy a Vacation Home in Florida

Why You Should Invest in Panama City Beach Real Estate

With this ever-changing housing market, you never know what to expect. There’s one thing for certain, however. Panama City Beach real estate has recently proven itself to be quite attractive. Today’s Panama City Beach real estate market is much different than it was a couple years ago and in a good way.

Panama City Beach is located in the Panhandle of Florida and consists of nearly 30 miles of white, sugar sand beaches and emerald Gulf waters. This beautiful vacation spot has caught the eyes of many and prides itself on its scenic beaches. Having won numerous awards including claims to the title of “World’s Most Beautiful Beach”, this is definitely the place you want to be buying an investment property in. Panama City Beach, however, is more than just a summer vacation hot-spot. It’s slowly becoming attractive for year-round investments as well. There are many reasons behind this location’s success for both vacation home rentals and long term rentals. Here’s exactly why you should invest in Panama City Beach real estate.

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#1. Affordability

Krista Navarro, a broker with Gulf Real Estate, tells WJHG just how affordable Panama City Beach real estate is. “In the panhandle, we are by far the most affordable place to come and stay. We’re also an affordable place to invest. Investors can still get a bang for their buck here. You can buy on the beachfront or off the beach front and we have a strong clientele of people who want to come and spend their time here.”

The Panama City Beach housing market is actually more affordable than most markets across the country. Panama City Beach has been more affordable in the past. However, it still manages to attract the attention of many. When compared to the rest of the state, the area’s cost of living is 10.6% less than the state average. This could be a cause of the population’s 3.8% increase from last year.

#2. Supportive Economy

Staying consistent with the national average, Panama City Beach has a current unemployment rate of 5.5%. Local employment growth is strong compared to other markets and growing at a rate of 2.4%. The city has got an encouraging job sector which is expected to support steady growth for the coming years.

#3. Appreciation Rate

Home prices in Panama City Beach have also continued to increase in value throughout the years. The city’s 1-year appreciation rate topped out at 14.2%. Although Panama City Beach was hit hard during the downturn, homes in the city have appreciated at a rate that is more than twice the national average. With this steady increase in Panama City Beach home prices, investors are encouraged to consider buying Panama City Beach real estate.

Related: How to Calculate Real Estate Appreciation

#4. Tourism and No Income Tax

Investing in real estate anywhere in Florida is seen as attractive to many because there’s no personal income tax in the state. It’s one of only seven states featuring this.

We already know how big of a role tourism plays in the success of Panama City Beach real estate investments. Vacation homes particularly perform very well here because of the tourist’s attraction to the beach. With 58 beach access points within city limits, the sugar white sand is never far away.

Panama City Beach Real Estate Market 2018- Data

If we still haven’t convinced you of how attractive Panama City Beach real estate is, there’s one last thing to mention. The data. Everything makes more sense in real estate when numbers are there as proof. Real estate analytics are the most powerful tool any real estate investor could have. With Mashvisor’s investment property calculator, you’re given so much more than just numbers. We provide data, insight,  and recommend the best rental strategy for your investment. Our calculator doesn’t just analyze specific investment properties, it also finds city-level data. Let’s see what our investment property calculator tells us about Panama City Beach real estate in 2018.

Related: Mashvisor’s Investment Property Calculator: Real Estate Investing Made Easier

Panama City Beach Real Estate Market

Median Property Price: $380,826Average Price per Sq/Ft: $232.85Monthly Traditional Rental Income: $1,871Monthly Airbnb Rental Income: $3,252Traditional Cap Rate: 2.63%Airbnb Cap Rate: 5.08%Traditional Cash on Cash Return: 2.63%Airbnb Cash on Cash Return: 5.08%Airbnb Occupancy Rate: 60.92%

We’d recommend your rental strategy be Airbnb rather than traditional. With an average Airbnb cap rate of 5.08% and rental income of $3,252, Airbnb Panama City Beach real estate is showing good signs for a high return on investment. In order to have a successful Airbnb real estate investment, however, you need to be sure to follow Airbnb regulations.

Related: The 5 Most Profitable Airbnb Locations According to Mashvisor’s Investment Property Calculator

To start your search for Panama City Beach real estate properties, click here.

We’ve already used our Property Finder tool and have chosen a couple of top-performing Panama City Beach real estate properties for sale.

Condo/Coop

Listed Property Price: $196,199Sq/Ft: 1,262Price per Sq/Ft: $1552 Beds and 2 BathsComparable Airbnb Rental Income: $3,144Airbnb Cap Rate: 9.61%Short Description: This beach-side resort offers unparalleled amenities with convenient beach access. Located in the heart of all the fun and excitement in Panama City Beach, this property is just steps away from the world’s most beautiful white-sand beaches.

Condo/Coop

Listed Property Price: $149,900Sq/Ft: 964Price per Sq/Ft: $1553 Beds and 2 BathsComparable Airbnb Rental Income: $3,689Airbnb Cap Rate: 9.08%Short Description: Right in the heart of Front Beach Road, these units are waterfront. Completely renovated 2 story unit. 2 master bedrooms downstairs and a loft with the bed upstairs.

For more details on the above-mentioned properties and other Panama City Beach real estate properties, click here. To start out your 14-day free trial with Mashvisor, click here.

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LocationPanama City Beach FL