Costs & Tendencies In 2023

Tampa, Florida, is among the fastest-growing cities within the U.S. and boasts a robust housing market that’s held as much as correction pressures by means of 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 in search of long-term progress.

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 full inhabitants tracks at simply over 3.2 million, making it the 18th largest metro within the nation. 

Under, you’ll see that Tampa has grown persistently during the last decade, aside from a minor decline in 2020. This progress pattern is anticipated to proceed as increasingly individuals transfer into the world.

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

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

House Costs

House costs in Tampa have remained steady throughout the housing correction. As you may see within the graph beneath, YoY progress is declining quickly, however house 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., corresponding to Dallas and Fort Price. 

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

Lease Progress and Money Circulation

Lease progress, 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 potential that they may decline by a pair hundred {dollars}, but it surely received’t keep that manner. 

As for money circulation, the map beneath exhibiting the rent-to-price (RTP) ratio in every ZIP Code signifies that money circulation depends upon location, however some areas can ship good numbers. Usually, you wish to discover an RTP ratio near 1% when in search of money circulation. Components of East Tampa and North St. Petersburg are your greatest bets, in addition to most of Clearwater. You can even discover some money circulation within the suburbs north of Tampa, corresponding to Wesley Chapel, which has grown considerably during the last 20 years.

Stock and Market Well being

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

Moreover, days on market (DOM) has been on the climb since Might 2022 and can also be again consistent with pre-pandemic numbers. 

Profitable Methods

General, Tampa is a strong marketplace for actual property buyers. It has an excellent value level, some first rate money circulation potential, and a robust financial system to help future progress. Whereas the nationwide housing market experiences a correction, Tampa has held up properly. Costs have been comparatively flat, and key lead indicators recommend that the market might 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 quick and mid-term leases additionally being thought-about when the numbers crunch out (through which case you should use the long-term technique as a possible emergency exit).”

If you happen to’re excited by studying extra about investing in Tampa, accomplice with a neighborhood investor-friendly actual property agent like Kim, who can information you thru the methods, ways, and neighborhoods to give attention to.

Right here’s the right way to 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 actual property sector, together with MPM® Grasp Property Supervisor NARPM and RMP® Residential Administration Skilled, and at present serves on the Florida Assoc. of Realtors Board of Administrators and the NAR Process Pressure ORRA.

Discover an Elite Agent in Minutes

Use Agent Finder to attach with native market specialists 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

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