MS Gulf Coast Rental Market

As a the Broker of a property management and real estate firm, I receive countly calls from investors from all over the US. "So, Eddie, what is the rental investment market like?" "what can I expect to rent my property for?". I decided to take a minute to BLOG. Maybe this will help some individuals.

I started my real estate career in Miami, FL in the early part of 1997. Five years earlier, Hurricane Andrew devastated the southern area of Miami. In its wake, Andrew left thousands of people homeless and set the Miami area back billions of dollars. At the time, many wondered if Miami would ever come back to what it had been. Many were concerned about the potential of another catastrophic hurricane, rising insurance rates and the high costs of construction. Shortly after the storm, at the end of 1992 early 1993, we had a peak in prices, then a short decline, followed by slow and steady growth.

In 1997, at the age of 21, I knew that real estate was the place to be in South Florida. I began selling, investing and managing real estate. The rest is history... The South Florida market BOOMED and people who were well positioned made millions. Real Estate investment is all about LOCATION and TIMING....

Fast-forward several years to August 29, 2005. Hurricane Katrina devastated the Mississippi Gulf Coast as the most destructive Hurricane to ever make landfall.

Unprecedented things have happened since Katrina:

- An estimated 65,000 homes were destroyed (more than twice the amount lost during Andrew)

- Federal support is continuing with more than $1.2 billion to individuals and families

- More than $2.3 billion has been obligated in Public Assistance

- Land based casinos approved on Oct. 17, 2005

- Congress approves the "GOZONE"- which offers extensive tax savings for investors, employers and business owners

- MDA (Mississippi Development Authority) offers several hundred million dollars in grant monies

- The City of Biloxi has issued over a billion dollars in building permits since Katrina

- In July 2007, Biloxi's casino industry reported a record-breaking $97.3 million in gaming revenue and Mayor Holloway said if the trend continues the city will earn a billion this year

The Mississippi Gulf Coast already has experienced a sharp increase in values, followed by a slow down in the market and now is beginning to see an increase in sales activity again. Based on the above facts and past post-hurricane market trends, we expect that our market will experience strong and steady growth over the next several years.

SO, what about the rental market?

Well, the same is true... Prior to Kartina the rent rates were 450-550 for a 2 bedroom apartment in Gulfport / Biloxi area, following the storm, the same apartment could rent for as much as $800, with a waiting list months long. That is about a 60% increase, OVER NIGHT!

NOW the market has settled down some. You can rent that same unit for $775-800/ month and it may take you 30-45 days to rent it.

We are seeing vacancy rates of around 5-8 Percent, which compared to most real estate markets, is pretty good. In addition, we have many factors which will contribute to the continued growth of the coast and a strong stable rental market.

Let us know if we can help you with your investment and management needs. CONTACT US