Costs & Traits In 2023

Tampa, Florida, is without doubt one of the fastest-growing cities within the U.S. and boasts a powerful housing market that’s held as much as correction pressures via this level. With a various financial system, giant tourism sector, and rising inhabitants, investing within the Tampa Bay space is a no brainer for anybody searching for long-term development.

Inhabitants and Labor Market

Positioned within the southwest portion of Central Florida alongside the “I-4 Hall,” the Tampa Bay metropolitan space consists of three cities: Tampa, Clearwater, and St. Petersburg. As of 2021, the whole inhabitants tracks at simply over 3.2 million, making it the 18th largest metro within the nation. 

Beneath, you’ll see that Tampa has grown constantly over the past decade, aside from a minor decline in 2020. This development development is predicted to proceed as an increasing number of folks transfer into the realm.

Resident Inhabitants within the Tampa-St. Petersburg-Clearwater Metropolitan Space (2011-2021) – St. Louis Federal Reserve

Tampa is dwelling to a number of main employers throughout a spread of industries, together with healthcare, finance, cybersecurity, and tourism. The unemployment price is presently pegged at 2.6%, which is almost a full proportion level decrease than the nationwide common.

Unemployment Rate in Tampa Compared to the National Average - St. Louis Federal Reserve
Unemployment Charge in Tampa In comparison with the Nationwide Common (2013-2023) – St. Louis Federal Reserve

Tampa additionally includes a median age of 35.9 years outdated, which is inside the peak family formation age vary and can assist prop up housing demand for the foreseeable future.

Dwelling Costs

Dwelling costs in Tampa have remained steady in the course of the housing correction. As you’ll be able to see within the graph under, YoY development is declining quickly, however dwelling costs have remained at their peaks close to the $350k-$375k mark. The strains on this graph aren’t so completely different than what we’re seeing from different sturdy markets within the U.S., akin to Dallas and Fort Price

Median Sales Price Compared to YoY Growth (2012-2023)
Median Gross sales Worth In comparison with YoY Progress (2012-2023)

Whereas these costs would possibly decline within the close to future as a result of total development declining, I wouldn’t count on this to be a long-term development. I’d additionally level out that costs in Tampa are round $60,000-$80,000 lower than the nationwide common as of April 2023. Total, investing in Tampa stays engaging.

Lease Progress and Money Stream

Lease development, like gross sales costs, has flattened out over the previous yr however is up considerably since 2018. As soon as once more, I wouldn’t count on lease costs to begin falling off a cliff. It’s attainable that they may decline by a pair hundred {dollars}, nevertheless it received’t keep that method. 

Median Asking Rent in Tampa (2018-2023)
Median Asking Lease in Tampa (2018-2023)

As for money circulate, the map under displaying the rent-to-price (RTP) ratio in every ZIP Code signifies that money circulate will depend on location, however some areas can ship good numbers. Usually, you wish to discover an RTP ratio near 1% when searching for money circulate. Elements of East Tampa and North St. Petersburg are your finest bets, in addition to most of Clearwater. You too can discover some money circulate within the suburbs north of Tampa, akin to Wesley Chapel, which has grown considerably over the past 20 years.

Rent-to-Price Ratio by Zip Code in Tampa, St. Petersburg, and Clearwater
Lease-to-Worth Ratio by ZIP Code in Tampa, St. Petersburg, and Clearwater

Stock and Market Well being

Stock within the Tampa market is down 22% YoY, which has helped in maintaining costs steady. The shortage of provide is extra according to the degrees we noticed in 2019, so it’s honest to say that market circumstances have/are returning to regular in some style. This isn’t a nasty factor. If something, the shortage of volatility makes the market a bit extra predictable, opposite to a number of the growth markets of the pandemic that are actually busting.

Housing Inventory in Tampa (2018-2023) - Redfin
Housing Stock in Tampa (2018-2023) – Redfin

Moreover, days on market (DOM) has been on the climb since Could 2022 and can be again according to pre-pandemic numbers. 

Days on Market in Tampa (2019-2023)
Days on Market in Tampa (2019-2023)

Successful Methods

Total, Tampa is a sturdy marketplace for actual property buyers. It has an excellent value level, some respectable money circulate potential, and a powerful financial system to assist future development. Whereas the nationwide housing market experiences a correction, Tampa has held up properly. Costs have been comparatively flat, and key lead indicators counsel that the market will likely be one of many extra steady housing markets within the nation over the approaching months.

Kim Meredith-Hampton, an investor-friendly actual property agent within the Tampa space, says, “I like to recommend utilizing a long-term rental technique to put money into Tampa, with brief and mid-term leases additionally being thought of when the numbers crunch out (by which case you need to use the long-term technique as a possible emergency exit).”

Should you’re occupied with studying extra about investing in Tampa, accomplice with an area investor-friendly actual property agent like Kim, who can information you thru the methods, ways, and neighborhoods to give attention to.

Right here’s  contact Kim Meredith-Hampton on Agent Finder:

  • Search “Tampa, FL”
  • Enter your funding standards
  • Choose Kim Meredith-Hampton or different brokers you wish to contact

Kim is an investor herself, managing a 3,000-unit portfolio throughout Central Florida and Jacksonville with in depth expertise in each single and multi-family investing. She holds a number of designations inside the true property sector, together with MPM® Grasp Property Supervisor NARPM and RMP® Residential Administration Skilled, and presently serves on the Florida Assoc. of Realtors Board of Administrators and the NAR Process Drive ORRA.

Discover an Elite Agent in Minutes

Use Agent Finder to attach with native market consultants like Victor Steffen, Kim Meredith-Hampton, and Matthew Nicklin.

  • Search goal markets like Dallas, Tampa, or Atlanta
  • Enter funding standards
  • Choose investor-friendly brokers that suit your wants

Observe By BiggerPockets: These are opinions written by the creator and don’t essentially signify the opinions of BiggerPockets.

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