Serving Santa Rosa County and Escambia County – Pace, Milton, Gulf Breeze, Navarre, Pensacola Florida

Are you looking to buy a property in Pensacola?

Buying and owning real estate is an exciting investment strategy, that can be both satisfying and lucrative. Unlike stock and bond investors, prospective real estate owners can use leverage to buy a property by paying a portion of the total cost up front, then paying off the balance, plus interest, over time. 

According to LittleBigHomes.com, the real estate market forecast for the twelve months ending with the third quarter of 2019 is positive. They also estimate that there is an 82 percent likelihood that home prices will rise in the third quarter of 2019.

Investing in Pensacola Real Estate

Real estate investing can be very lucrative. In fact, real estate has historically produced more wealth than any other industry. That said, real estate investing is not a guaranteed shortcut to quick wealth.

To succeed, you need to be diligent. So, the million-dollar question is: is Pensacola a good investment destination?

Well, it is if the current market trends are anything to go by. For starters, home values in Pensacola have gone up by 10.9% over the past year, and Zillow predicts that prices will rise by over 7.1% in 2020.

The following are six of the top reasons why you should consider investing in Pensacola real estate:

Reason #1: The city’s tourism is seeing steady growth.

Not only is the real estate in Pensacola affordable to locals and investors alike, but it is also responsible for attracting thousands of tourists to the area. It is home to a number of landmarks, historic tours, events, and festivals.

According to the latest values released by Visit Pensacola, the area attracted 2.1 million tourists last year. Additionally, the figures keep growing year after year. As a potential investor in the city’s real estate market, this is great news.

Investing in Pensacola real estate gives you the opportunity to earn good money that may increase over time as tourism numbers continue to grow.

Reason #2: Florida does not have a state income tax.

Although Floridians still have to pay federal income taxes, the state constitution prohibits state income taxes. This makes Florida one of seven such states in the country.

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The state also stands out for its low property tax rate. At 0.98%, it ranks 26th in the nation in a recent analysis done by WalletHub. Factor in the low home values and this is where you will find the lowest overall ownership costs for a home in a coastal town.

Reason #3: The economy is ideal for a real estate investor.

The city’s real estate market is stable with projected steady, long-term growth. The economy is diversified, with many residents working in the tourism, healthcare, and manufacturing sectors. The educational and military sectors are also strong in the area.

Reason #4: You can expect a good ROI.

As of October, this year (2019), the average rent for an apartment in the city was $1,064—an 11% increase from 2018, when the average rent was $945.

According to Rent Jungle, one-bedroom and two-bedroom apartments in Pensacola rent on average for $940 and $1,110 a month, respectively.

Reason #5: Property appreciation is nearly a guarantee.

The city’s real estate market is expected to appreciate in the coming years. The city’s real estate appreciated by a whopping 40.68% over the past decade.

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This is an average annual home rate increase of about 3.5%, putting it into the top 20% nationally in terms of property appreciation.

Reason #6: The real estate is still relatively affordable.

Pensacola real estate is often overlooked in favor of hotter markets like Miami and Orlando. This perhaps explains the low median price of real estate, which is about $160,000. This is roughly 25% less than the median home price in the state of Florida.

These are just some of the reasons that make real estate investing in Pensacola a potentially lucrative venture. Nonetheless, as with any real estate investment, buying in the right neighborhood is key. The location alone can make or break your investment.

13 Neighborhoods to consider when investing in Pensacola real estate

Pensacola has many wonderful neighborhoods. Below you will find some excellent areas to invest, along with some of the activities you can find there.

1. Downtown Pensacola

At the heart of the city, Downtown Pensacola is famous for its European history. It has plenty of attractions, including: 

  • Historic Pensacola Village
  • Pensacola Museum of Art
  • Fort George
  • Plaza Ferdinand
  • T.T Wentworth Florida Museum

There are also many restaurants and clubs worth visiting. These include the following: 

  • End of the Line Café
  • Bonelli’s Café Italia
  • Coffee Cup Restaurant
  • Carrabba’s Italian Grill
  • 1912 The Restaurant
  • Tops Choice Hamburgers
  • Chizuko
  • Azalea Lounge
  • CAVU Club

There are also some interesting hikes that take place near the downtown area: 

  • The Florida National Scenic Trail in Fort Pickens
  • Pensacola Lighthouse
  • Colonial Archaeological Trail
  • Pensacola Maritime Trail
  • Arcadia Mill

2. Baymarc

Baymarc is known for having plenty of baseball games, fireworks, and parades for residents and tourists to enjoy. Some of the best restaurants to visit are: 

  • Pensacola Bay Center
  • McGuire’s Irish Pub
  • Another Broken Egg Café
  • South Market
  • The Olde English Café
  • Dharma Blue
  • Bagelheads
  • Taste of India
  • Alcaniz Kitchen & Tap
  • Hub Stacey’s
  • Rodizio Grill – Pensacola
  • Lucy’s in the Square
  • Aragon Wine Market
  • Sammy’s
  • Salt Grass Steakhouse
  • Aragon Café
  • Groovin Noovin’s Food
  • Franco’s Italian Restaurant

3. Cervello

Residents of Cervello love this quiet and secure neighborhood, with its well-lit streets and a friendly community, often hosting events. Some of the local restaurants include: 

  • Calvert’s in the Heights
  • The Magnolia
  • Scenic 90 Café
  • Marina Oyster Barn
  • Georgio’s Pizza
  • Apple Market
  • Running Wild
  • New Yorker Deli & Pizzeria
  • SIR Richards
  • Constant Coffee & Tea
  • Jerry’s Drive-In
  • Los Cebollines Mexican
  • Aunt Katie’s
  • Vapor Toro

4. Sunny Ridge

Sunny Ridge is best known for its walkability, safety, low noise levels, community events, and well-kept yards. The restaurants in the area are: 

  • Blues Angel Music
  • New Market Antique Mall
  • The Oar House
  • Elbow Room
  • Purple Julia
  • Saigon Oriental Market & Deli
  • Taste of Jerusalem
  • CJ’s Kitchen & Grille
  • China Wok
  • Backseat 
  • Quickly Restaurant
  • King Cookers Creole Seafood

5. Goulding

Goulding’s top features are its safety, friendly neighborhood ambiance, well-lit streets, community events, and dog-friendly community areas. Some attractions of the area are: 

  • Bayview Dog Beach
  • East Hill Market
  • Brew Ha Ha
  • Loblolly Theater Company
  • Hot Spot Barbeque
  • Café Single Fin
  • Broussard’s Bayou Grill
  • Gulf Coast Brewery
  • Waterboyz
  • Maximilian Coffee
  • The Vineyard
  • O’Zone Pizza Pub
  • Cactus Flower Café
  • Tacos Mexicanos
  • J’s Bakery & Café

6. Woodland Heights

Residents of Woodland Heights love the sense of safety and dog-friendly area that this neighborhood provides. The area features: 

  • Cordova Mall
  • Wisteria Tavern
  • Zoe’s Kitchen
  • Sushi Masa
  • Bonefish Grill
  • Yummy Poke
  • Twin Peaks
  • Sake Café
  • Tijuana Flats
  • Red Robin Gourmet
  • Pieology Pizzeria
  • The Leisure Club Coffee Bar
  • O’ Brien’s Bistro

7. Eastmount

Residents like Eastmount’s walkability, since there’s not a lot of public transportation options nearby. They also feel a sense of safety in this neighborhood. Some of the local highlights include: 

  • Bailey’s Produce
  • Hot Spot Cigars & Coffee
  • Crabbi Patti’s
  • Two Men and a Truck Pensacola
  • St Vincent de Paul Thrift Shop

8. Britanny Forge

Brittany Forge is a low traffic area, offering a general sense of safety to those who reside here. The local attractions are: 

  • Tokyo
  • Sleepy Time Hammocks
  • Bay Bluffs Park

9. La Mirage

Residents of La Mirage enjoy a friendly and safe community, great for raising kids. It’s suitable for long-term residence with its close proximity to grocery stores and restaurants. Other things to check out in the area are: 

  • Pensacola Strings Academy
  • Doug’s Botanicals

10. Briggs Manor

Parents in Briggs Manor value its first-rate school system. Things to do in the neighborhood include: 

  • Pensacola Beach House
  • Einstein Bros Bagels
  • Aviation Discovery Park
  • Frazier’s Boutique
  • USO

11. Kensington

Residents of Kensington love the nearby amenities. These include parks, libraries, shopping centers, hospitals, and schools. The community is friendly and safe. Attractions in Kensington include: 

  • Siam Thai Restaurant
  • Golden Corral Buffet & Grill
  • Zaxby’s Chicken Fingers
  • Four Winds International
  • Uptown Market
  • TBS Comics
  • ION CBD
  • Hardee’s Red Burrito
  • Hungry Howie’s Pizza and Subs
  • PoFolks

12. Regency Park

Those living in Regency Park love the accessibility of the beach, parks, and shops. Schools in the area are highly-rated and safe. Overall, this neighborhood is good for those looking to raise a family. Nearby attractions and restaurants include: 

  • Chow Tyme Grill Buffet
  • Cicis
  • Little Caesar’s Pizza
  • Spanish Trail Pub & Eatery
  • Hitzman-Optimist Park
  • Cloud City Vaporium
  • Firehouse Subs
  • Green with Envy
  • Dollar Tree

13. Walden

Residents of Walden appreciate that schools, malls, and hospitals are all easily accessible from this neighborhood. Further, the community is warm, welcoming and the local schools are rated above average. Some of the local amenities include: 

  • George Bistro + Bar
  • The Fresh Market
  • Coffee Guy Café
  • Cordova Cigars
  • AMC Bayou 15
  • The Tuscan Oven Pizzeria
  • Publix
  • Mellow Mushroom
  • Miles Antique Mall
  • Mr. Pollo Restaurant
  • Miller’s Ale House
  • Eggs Wits
  • Cactus Cantina Mexican Grill
  • Joe’s Caribe
  • Fifty Dollar Eye Guy
  • BJ’s Restaurant & Brewhouse

Quick Facts About Pensacola, FL

Real Estate: The average home in Pensacola costs about $144,600. In the last decade, homes have appreciated by about 10.2% annually.

Transportation: The average commute time is 19.9 minutes. (The national average is 6.5 minutes more.)

Population: Pensacola’s population is about 50,000 people. This is a decline of about 10,000 since the year 2000.

Weather and Climate: April, October, and November are the most pleasant months in Pensacola.

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Cost of Living: The cost of living in Pensacola is 12.7% lower than the national average.

Economy: The unemployment rate is 2.9% in Pensacola compared to 3.9% for the national average.

The Bottom Line

If the market data is anything to go by, the Pensacola, Florida real estate market has a high potential for aspiring investors. The economy is doing great, and both homes and rentals are on a steady rise.

If you are just starting into the world of real estate investment, please consider hiring a real estate agent to help you make the best decision. Afterward, a professional property management company can help you maximize the potential of your investment.