There is a rising demand for Destin short-term rentals. It means investing in Destin Florida condos is favorable for real estate investors.

The real estate market in Destin Florida is booming. The current inventory cannot keep up with the increased demand for houses for sale, long-term rentals, and vacation rentals, and so we can expect to see a steady seller’s market in Destin in 2022. Additionally, with the improved tourism industry, the demand for short-term rentals is also expected to soar. If you intend to invest in Airbnb rentals, it’s best to consider investing in Destin Florida condos.

Overview of the Florida Real Estate Market

The Florida residential real estate market gradually prospered in 2021. With the return of the spring buying season this year, sales of homes and condos in Florida are improving significantly. The local population continues to grow in number, which is an essential driving factor for the Florida housing market. As a result, more and more people are looking for properties to buy or rent for the long term.

With the increased vaccination rate and the relaxation of the local restrictions, the state is slowly reopening its tourism industry. More and more tourists are coming to Florida, boosting the demand for vacation rentals across the state. We can expect to see strong demand for short-term rentals in 2022 and the coming years. It is why buying an investment property this year is a good decision.

Here is a general overview of the real estate market in Florida, based on Mashvisor data as of February 2022:

  • Listings for Sale: 28,918
  • Median Property Price: $680,781
  • Average Price per Square Foot: $400
  • Days on Market: 90
  • Traditional Listings: 93,117
  • Average Monthly Traditional Rental Income: $2,183
  • Traditional Cash on Cash Return:88%
  • Price to Rent Ratio: 26
  • Airbnb Listings: 44,092
  • Average Monthly Airbnb Rental Income: $3,780
  • Airbnb Cash on Cash Return:71%
  • Airbnb Daily Rate: $203
  • Airbnb Occupancy Rate: 64%

Related: How to Get Access to Airbnb Data Analytics

Destin Florida Real Estate Market

Destin is one of the most visited tourist destinations in Florida. It is known for its pristine white sandy beaches and stunning emerald green waters, and it is often referred to as the “World’s Luckiest Fishing Village.” Destin is an excellent destination for people who love water adventures and activities such as fishing, jet skiing, parasailing, dolphin cruises, kiteboarding, water skiing, paddleboarding, kayaking, and more.

Generally, the real estate market in Destin is thriving. A wide range of opportunities is available to real estate investors who are planning to invest in the Destin real estate market. Since Destin’s population more than triples during the peak season, many investors prefer to buy vacation properties, and investing in Destin Florida condos is an easy choice.

While the Airbnb Destin FL market continues to flourish, there is also a good opportunity in traditional rentals as Destin’s working population grows. So whether you are planning to buy condos in Destin Florida to rent out as Airbnb or as traditional rentals, you can expect high demand and good potential for profitable returns.

Here is the general overview of the Destin real estate market as of February 2022, based on Mashvisor data:

  • Listings for Sale: 63
  • Median Property Price: $1,041,144
  • Average Price per Square Foot: $519
  • Days on Market: 159
  • Traditional Listings: 33
  • Average Monthly Traditional Rental Income: $2,145
  • Traditional Cash on Cash Return: 43%
  • Price to Rent Ratio: 40
  • Airbnb Listings: 520
  • Average Monthly Airbnb Rental Income: $3,348
  • Airbnb Cash on Cash Return: 13%
  • Airbnb Daily Rate: $291
  • Airbnb Occupancy Rate: 52%
  • Walk Score: 52

Destin Florida Condos: Why Are They In-Demand

Many real estate investors want to own a condo in Florida because it can be an excellent investment. It can also serve as a place for family vacations, considering Florida is one of the most visited destinations in the United States. With the many tourist attractions and interesting holiday activities in Destin, the Destin Florida condos are one of the most in-demand properties in Florida, especially for short-term rentals.

Investing in beachfront condos in Destin Florida can be very promising. In fact, if you own one of Destin Florida condos on the beach, it can be a sure way to earn a consistent stream of supplemental income. Destin beaches are often teeming with tourists, especially during the peak season. It is one of the reasons why vacation rentals near Destin beaches are so popular.

As of the moment, there aren’t many Airbnb beach rentals in Destin yet, which means there are more market opportunities for new investors. We can expect more improved tourism in Destin Florida in 2022 and in the years to come, so if you’re planning to invest in Destin Airbnb rentals, now is the best time to do so.

To ensure that you can maximize your potential for profits, it’s important to find the best Destin Florida condos and short-term investment properties that are strategically situated so they can help attract guests and keep your property occupied all year round.

Destin Florida Condos - Beachfront Location

Destin Florida condos located near beaches attract lots of tourists, helping provide a steady stream of rental income for real estate investors.

How Much Are Condos in Destin Florida?

Typically, the prices of Destin condos vary depending on their location, amenities, size, appraised value, and other factors. The typical price range of the condos for sale in Destin Florida is from $250,000 to $3,500,000 or more.

Destin Florida Condos Real Estate Market Data

  • Number of Condo Listings for Sale: 46
  • Median Property Price: $833,319
  • Average Price per Square Foot: $530
  • Days on Market: 156
  • Number of Traditional Condo Listings: 32
  • Monthly Traditional Rental Income: $1,854
  • Traditional Cash on Cash Return: 19%
  • Price to Rent Ratio: 37
  • Number of Airbnb Condo Listings: 525
  • Monthly Airbnb Rental Income: $2,988
  • Airbnb Cash on Cash Return: 2%
  • Airbnb Daily Rate: $294
  • Airbnb Occupancy Rate: 51%
  • Walkscore: 52

 Based on Mashvisor’s February 2022 data, there are 46 Destin Florida condos for sale, with a median price of $833,319 and an average price of $530 per square foot. The number of traditional condo listings in Destin FL total 32, with an average monthly traditional rental income of $1,854 and a price to rent ratio of 37, which is considered high. It means that condo prices in Destin are too high compared to rental rates, so many people would instead rent one of Destin Florida condos for the long term than buy their own.

Currently, there are 525 Destin condos listed on the Airbnb platform. The average monthly Airbnb rental income is  $2,988, with an average daily rate of $294 and an occupancy rate of 51%. Destin Florida’s Walk Score is 52, which can be considered high. It means that the city is generally walk-friendly, making it an attractive location is for both long-term tenants and Airbnb guests.

Related: The Best Airbnb Pricing Calculator in 2022: A Mashvisor Review

Tips for Buying a Profitable Destin Florida Condo

When it comes to buying Destin Florida condos as investment rentals, it’s important to ensure that you choose a profitable property so you can enjoy a return on your investment soon. A profitable condo rental can easily attract guests, not only during the peak season but all year round. If you can find a Destin condo that can easily get occupied, it can help you produce a steady passive income.

Here are a few things that you need to consider to ensure that you’re buying a profitable condo rental in Destin Florida:

1. Location

Before anything else, the first thing that you should ask yourself is, “Where is the best place to buy rental property?” Be aware of the factors that can make a particular location the best location for either traditional or vacation rentals.

Of course, if you plan to rent out your condo property as a traditional rental, you should choose an area that’s closest to where there are job opportunities. If you plan to rent your Destin Florida condos as Airbnb, choosing condos that are located near tourists spots is a good idea. They generally attract more guests and rent better compared to those that aren’t.

2. Amenities

Amenities are essential regardless of your investment plans—whether you are planning to rent out your condo as a traditional or short-term rental. More luxurious condos that offer excellent amenities such as gyms and swimming pools can be expensive. However, they are usually worth the investment as most tenants and tourists prefer to rent a condo with a good selection of features.

The more the amenities, the higher the rent you can charge to your tenants. However, it is also something that you need to closely consider, as you might find it challenging to get your property occupied if your rate is too high.

3. Rental Income

It’s important to consider the potential rental income of a property in order to determine whether a particular condo can be a good rental investment or not. When looking for Destin Florida condos to invest in as Airbnb, it’s crucial to take a look at the Airbnb analysis to ensure that you’re buying a profitable investment.

Mashvisor provides an in-depth property analysis that includes the potential rental income of a particular investment property whether you rent it out as a long-term or short-term rental. When you search for a condo for sale in Destin Florida, you can use the Mashvisor tools (such as the mortgage calculator) to help you get a general idea of the property’s potential income and expenses.

Destin Florida Condos - Rental Income

Mashvisor helps real estate investors perform in-depth property analysis and determine potential rental income using relevant metrics such as cash flow, cash on cash return, and cap rate.

4. Expenses

Property taxes and condominium association fees are two of the largest expenses that are associated with owning a Destin Florida condo. The condo association fees typically include insurance for the building and common areas, maintenance, utilities like water, sewer, and basic cable. They also comprise services such as security, trash removal, and routine maintenance of the building and grounds, as well as amenities.

When calculating your potential cash flow and income, it’s important to include all relevant expenses in your computation so you can get an accurate figure. It will help you decide whether a condo will be a profitable investment or not.

5. Understand the Market Data and Insights

Before buying any of the condos for sale in Destin Florida, you need to make sure that you understand the current market data. Know the average daily rate, occupancy rate, cap rate, best rental strategy, nearby tourist attractions, as well as read some reviews of the area. They can significantly impact your profitability.

With Mashvisor’s comprehensive real estate market insights and analysis, you will get a general overview of the property’s real estate market data. You will also obtain information about the rental comps and insights to help you understand the neighborhood and your potential competitors. Knowing and understanding the market data are critical, especially if you want to make an informed investment decision.

Related: Rental Comps: What Are They and Where Can I Find Them?

Invest in Destin Florida Condos Through Mashvisor

Investing in Destin Florida condos in 2022 is a wise idea, especially since the real estate market in Florida is thriving and tourism’s been slowly bouncing back since the beginning of the pandemic.

While Destin Florida is an excellent location for both traditional and Airbnb rentals, there are more opportunities and demand for short-term rentals because Destin is one of the favorite tourist destinations. If you plan to invest in Destin FL Airbnb, make sure to know the short-term rental rules and regulations so you won’t get in trouble with your Airbnb investment.

If you are ready to buy one of Destin Florida condos but are not sure where and how to invest in real estate, Mashvisor can help you find the best place to buy a rental property through its database that contains a wide selection of investment properties. Just type in the city or neighborhood of your choice, and you will be provided with a list of properties for sale in that area. You can narrow down your search by selecting filters such as budget, rental strategy (whether traditional or Airbnb), type of property, as well as the number of bedrooms and bathrooms.

Click on a property that interests you, and you will see a detailed analysis of the average monthly rental income, cap rate, cash flow, average daily rate, occupancy rate, median home value, expenses, comparable listings, neighborhood analysis, and more.

Search for a property using Property Finder to get started. Sign up for a free trial to access all of Mashvisor’s tools for real estate investors.

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