Sarasota vs. St. Petersburg: Which is the Better Investment Bet?

Investors, if you’re eyeing Florida’s Gulf Coast, you’re probably choosing between Sarasota and St. Petersburg for your next venture. On the surface, they seem pretty similar.. beaches, cities, rentals… even proximity to each! They’re just a short drive away across the massive Skyway Bridge. Let’s dive into what these cities offer, backed by the latest data.

Sarasota: Upscale and Attractive

Sarasota is known for its quality of life – good beaches, arts, and dining. But let’s talk numbers. Sarasota’s population in 2023 is estimated at 56,003, a 3.41% increase since the 2020 census[^1]. The broader Sarasota-Bradenton metro area saw a 0.93% increase from 2022, with a current population of 757,000[^1]. In terms of wage growth, the area has experienced a 1.8% increase over the past year[^2].

St. Petersburg: Growing and Affordable

St. Petersburg is more than just its downtown life. It’s a city with potential. Despite a slight population decline of -0.53% since the 2020 census, bringing its 2023 population to 257,290[^3], the broader Tampa-St. Petersburg-Clearwater metro area has seen a population increase of 0.45% in 2023[^3]. Wage growth in the area is notable at 2.5% over the past year[^4].

Job Growth: The Employment Perspective

Job growth is a crucial indicator for investors. In Sarasota, the job market has shown a 1.8% growth over the past year[^5], while St. Petersburg, part of the larger Tampa metro area, also reported a 2.5% increase in jobs[^6]. This growth in employment is a positive sign for the rental market, as a growing job market typically leads to increased housing demand.

What about rental to ownership ratios? This can mark demand for rentals as well. In Sarasota, the percentage of the population that rents is 43.5%​​. St. Petersburg has a slightly lower percentage of renters, with 37.3% of its population renting​​. These stats are admittedly flawed because the reports don’t factor in short term rentals. Sarasota has a ton of short term rentals which likely skews the stats upward when only talking about long-term rentals.

Investment Strategy: What Fits You Best?

Sarasota is ideal for those looking to invest in high-end properties with potential for high returns over the long term, supported by a growing population and wage increases. St. Petersburg, with its strong job and wage growth, is suitable for those wanting to capitalize on a growing yet already established market.

Beaches

The ultimate showdown and what Florida offers the best. Sarasota’s Siesta Key Beach and St Petersburg’s Clearwater Beach are both rated as some of the best in the country. There are numerous peripheral beaches that have less tourist traffic, but none that have the same level of soft sand or shops and things to do afterward within walking distance. My personal favorite beaches are Anna Maria Island (Bradenton) and Fort Desoto (St Pete) though.

Sarasota

  1. Siesta Key Beach: This beach is often recognized as one of the best in the United States. TripAdvisor ranked it second on its list of top 10 U.S. beaches. It’s known for its soft, cool-to-the-touch quartz sands, offering a unique beach experience​​.

  2. Lido Key Beach: Ideal for families, Lido Key Beach features tranquil waters and gentle surf. It’s a popular spot for relaxing and enjoying activities like sandcastle building and seashell collecting​​.

  3. Nokomis Beach: As Sarasota County’s oldest public beach, Nokomis Beach offers a serene and less developed area, perfect for those seeking a peaceful beach experience​​.

  4. Venice Beach: Known for its wide expanse of white sand and clear blue waters, Venice Beach is a hotspot for swimming, sunbathing, and fishing​​.

St Petersburg

  1. Clearwater Beach: Consistently ranked as one of the best beaches in America, Clearwater Beach offers a lively and popular destination, suitable for a range of activities​​.

  2. St Pete Beach: Rated the #1 Beach by TripAdvisor in 2021 (and in the top 10 in previous years), St Pete Beach is not only one of the best beaches in St. Petersburg but also in the world. It’s known for its scenic beauty and vibrant local atmosphere​​.

Both cities offer distinct opportunities. Sarasota brings the appeal of an upscale market with steady growth, while St. Petersburg offers potential in a robust economy with more accessible investment options. The decision hinges on your budget and investment style. Need help deciding or want more insights? Schedule a kick-off call with me HERE. Which one would you choose?

[^1]: [World Population Review – Sarasota Population](https://worldpopulationreview.com/us-cities/sarasota-fl-population)

[^2]: [BLS – North Port-Bradenton-Sarasota Economy at a Glance](https://www.bls.gov/regions/southeast/fl_northport_bradenton_sarasota_msa.htm#eag_fl_northport_bradenton_sarasota.f.p)

[^3]: [World Population Review – St. Petersburg Population](https://worldpopulationreview.com/us-cities/st-petersburg-fl-population)

[^4]: [BLS – Tampa Economy at a Glance](https://www.bls.gov/regions/southeast/fl_tampa_msa.htm#eag_fl_tampa.f.p)

[^5]: [BLS – North Port-Bradenton-Sarasota Economy at a Glance](https://www.bls.gov/regions/southeast/fl_northport_bradenton_sarasota_msa.htm#eag_fl_northport_bradenton_sarasota.f.p)

[^6]: [BLS – Tampa-St. Petersburg-Clearwater Economy at a Glance](https://www.bls.gov/regions/southeast/fl_tampa_msa.htm#eag_fl_tampa.f.p)