The Tampa Rental Market

Tampa Real Estate is projected to be one of the most active real estate markets by 2021 and is a top city investors should consider when formulating their investment strategy for rental properties. Freddie Mac released the Freddie Mac House Price Index ( FMHPI ) earlier this month, a report that updates short- and long-term property price trends in key US markets. For real estate investors, Tampa’s housing affordability research helps predict current and future demand for rental properties. The real estate market in Tampa is growing and prices are low, so real estate has a good chance of strong appreciation in the coming years.   

Tight supply and increased demand for housing have pushed up prices in the Tampa Bay Area housing market. A hot housing market can leave buyers out in the cold, which helps drive up demand for rental properties in the Tampa area. Although residential property prices in Tampa are rising at a fast pace, they are still relatively affordable relative to other markets in the country.

Rental prices rose 6.6% year-on-year, pushing the average rental price up to $1,589, indicating strong demand for rental housing. Those renting or looking for apartments in Tampa Bay know that rents in the area are rising as housing demand continues to soar.

The price-to-rent ratio in Las Vegas indicates that there are good advantages in renting and owning in the Las Vegas area, which makes it one of the best rental markets in the US. Las Vegas Real Estate Market Statistics are a positive sign for real estate investors considering investments in the area as they reflect the growing demand for rental properties.

The Tampa Bay region, which includes Tampa, St. Petersburg and Clearwater, has consistently placed in the top ten real estate markets in recent years, making it a hotspot for commercial and residential real estate investors. The Tampa Bay market includes three different cities (Tampa-St. Petersburg-Clearwater) scattered over two counties (Hillsborough and Pinellas).

TAMPA, Fla. - If you're thinking about moving to the Florida Bay Area, this is one of the most affordable areas in the state. Tampa, Fla. housing market is a competitive housing market and a seller's market. Local estate agents say they have never seen such a housing market and it is not unusual to receive 20 to 30 offers for a home.

Clark, who works with buyers on a budget, says the market in Tampa is so hot that house hunters don't have time to bargain. With limited supply and inventory in the months ahead, Tampa Bay is a hotly contested real estate market, meaning that buyer demand exceeds the current inventory of homes for sale.

The Zillow Buyers and Sellers Index considers Tampa a "hot housing market" and predicts that home values in the next 12 months will rise by double digits. With a population of 399,700 and 152,299 homes, and a median value of $285,274, real estate prices in Tampa are above average relative to national prices. Tampa has an affordability index of 5 from 10, which means that housing affordability is in the middle range, which explains the percentage of people renting in Tampa.

The rental market in Tampa has gained momentum in recent quarters, as long-awaited job growth and retirees resume their migration to Florida. The hot housing market in the Tampa area has caught the attention of institutional investors. Investors who choose this market experience high growth in their investments, as it is one of the hottest locations for residential and commercial real estate.

The low population size and overall affordability across the geographical area means that fewer residents are inclined to look for housing during the prolonged closure caused by the pandemic. Other factors that have increased demand for rental homes are what Brian Alford-Costar, director of market analytics for Florida, calls higher growth in household education because many people are delaying moving into homes until the coronavirus pandemic is over.

Costars data show that Tampa Bay has actually experienced the biggest increase in supply in two decades, with 5,600 new rental homes added last year alone. In addition, Tampa Bay is the top place for people to migrate, and the city has seen its rental prices recover faster than the rest of the country, he added. During the last real estate cycle, when the market bottomed out in March 2012, home prices in Tampa rose 9.49%.

More than 90% of economists and real estate experts surveyed last year by the Tampa Bay Times expect that the Tampa real estate market will perform or surpass the national housing market this year. Tampa's rate of appreciation in the last quarter makes it one of the highest-rated communities in America and signals the city's future investment strength in real estate.

Elliot Eisenberg, Ph.D., a consultant economist at Greater Tampa Realtors, says "Our region is a microcosm of what's happening nationally: a strong labor market and other factors drive demand and inventory to meet that demand. Unchecked, vacant homes and apartments in Tampa can drag down the real estate market and keep property prices in Tampa below the level they could reach if vacant homes are absorbed and the market is more occupied. While virtually every market in the country has a scarce housing stock, the supply in Tampa is less than half the national average.

After COVID-19, Denver average home supply fell to its lowest ever level, making it one of the closest and most competitive markets in the country, leading real estate investors to be more aggressive in finding properties to invest in, forcing many residents to rent out.