Florida has always been a popular state to travel to, retire in or enjoy sunny living all year round. After last year’s pandemic left people craving carefree days and fun activities, cities like Tampa are seeing an increase in travelers as well as buyers. With a lower cost of living than many parts of the country and access to a dozen beaches on the Gulf Coast, more and more people are deciding to make this city their permanent home.
Current Tampa Market Conditions
- Median home and rental prices have seen a steady increase in recent years.
- Although construction prices are up 8%, builder sentiment and construction jobs continue to rise.
- There has been an increase of 1,200 households in this market year-over-year.
Buying a House in Tampa
Tampa Home Prices
Tampa median home value: $295,000
National average: $371,000
Home prices in Tampa have seen an impressive increase in the past 5 years. In 2016, the median home price was just $165,000. They have now almost doubled in value. Similar increases have taken place in other areas of the country as well. Nationally, home prices have seen an increase of 22.4% year-over-year, while Tampa has seen a 17.5% increase. This is a major difference in Tampa though, where the home prices were so low to begin with. Known as a relatively inexpensive area to live in, these increases may ultimately price out some buyers looking to purchase in this market.
Tampa Housing Supply
The housing supply in Tampa is at an all-time low. It has dropped from a 3-month supply in 2020 to just a half-month supply currently. Nationally, the housing supply is at a 1.1-month supply, which is already a shocking number. The fact that Tampa is at only a half-month supply means that this real estate market is one of the most competitive in the country. Buyers should be aware that with supply this low it will be increasingly difficult to purchase a home. Homes are going quickly for well over asking price and with little to no contingencies. There just aren’t enough homes for the number of people looking to buy in Tampa right now. For sellers, it’s a great time to sell and make the most off of your investment. Or, rent your home and continue to reap the rewards.
Buying a Rental Property in Tampa
Tampa is a great city to buy a rental property in. The homes are affordable, and the need for rentals is there. Having the prime location, the rising rental prices and the low rental vacancies, the opportunity for a great investment is clear. Getting into this market will prove to be competitive but worth the investment for years to come.
Tampa Rental Prices
Tampa median rental price: $1,617
National average: $1,704
Rental prices in Tampa are rising much faster than the national average. Year-over-year, Tampa has seen a price increase of 11.1% for rentals, while the national average has seen just a 3% increase. Tampa’s housing prices are much lower on average when compared to national prices, but its rental prices are close and continuing to increase. Investors are paying less than the average price to purchase here and getting almost the same amount of rent in return. As Tampa is also a great place to retire, investors looking at the future will have themselves set up with not only an investment opportunity for the years ahead but also a beach haven to retire to when that time comes.
Tampa Rental Vacancies
Tampa rental vacancy: 8.1%
National average: 6.8%
Although the rental vacancies in Tampa are slightly higher than the national average, they are continuing to decrease. Rental vacancies in Tampa have gone down 1.3% year-over-year, compared to a national increase of 0.8%. For investors, this is a promising outlook as the housing supply is low, and vacancies are decreasing.
Tampa foreclosure rate: 0.5%
National average: 0.3%
Foreclosures in Tampa as well as nationally are extremely low and have each dropped 0.1% in the last year. Both also have seen steady decreases in recent years. With foreclosure rates so low, it means that people are paying their mortgages and taking care of their homes. There isn’t an abundance of vacant and run-down homes in this area. While investors who make their money flipping foreclosures won’t have it easy with this low number of foreclosures available, it’s great for the economy and real estate market of Tampa. It shows that it’s a great place to buy and live, and people want to stay there.
Tampa Foreclosure Listings
Carrollwood is a popular suburb of Tampa. The homes here are primarily 3- to 5-bedroom single-family homes with some high-rise apartment buildings. The median price for homes in Carrollwood is $462,406, with rentals around $1,682. Being a great neighborhood with low crime, easy walkability and affordable rent, college students tend to live here. In addition to college students, residents here are mostly well-educated professionals. Other occupations include sales and service jobs, assistants, tech support and fast-food employees. This neighborhood is also culturally diverse, with many different languages spoken here.
The most expensive neighborhood in Tampa is located at South MacDill Avenue and West Morrison Avenue. With home values at almost $1 million, this area is more expensive than 97% of other areas in the state. This suburb is made of mostly newer homes built in the 2000s. Occupations here are mostly executives and managers as well as other professional jobs. About 14.2% of the residents here work from home. This wealthy neighborhood is ideal for families and professionals alike.
A rural, coastal neighborhood in Tampa that is 100% renters is in North Boundary and Radar Road. Rentals here average more than $3,000, with home prices being $334,700. Newer, larger single-family homes and townhomes make up this area. A large number of residents here are active in the military, with MacDill Air Force base located right in town. Other jobs include managerial and professional jobs as well as jobs in manufacturing and labor. This is a beautiful spot to live in with easy walkability and a nautical feel.
Tampa Economic Condition
The local economy in Tampa is doing well. Several factors are contributing to this, such as an increase in households, a surge in travel and a thriving housing market. This popular city has also seen a major increase in jobs and a decrease in unemployment since last year.
Tampa unemployment rate: 4.7%
National average: 6.1%
Unemployment rates in Tampa are lower than the national average. The unemployment rates have dropped 0.8% year-over-year. Nationally, there has been a larger drop of 8.7%, but Tampa’s numbers are looking good, and employment rates are up 139,100 since last year. An increase in travelers and tourism has brought more job opportunities for people working in attractions, retail and hospitality. The number of colleges and hospitals around the area also contribute to local jobs for professional occupations.
Tampa top Employers
The University of South Florida is the biggest employer in Tampa. It employs 13,584 people and offers a myriad of courses and programs. A favorite Florida university, it has been named the 8th-leading public university for U.S. patents. It is also a top university in the nation for veterans. This campus offers internships, undergraduate and graduate studies, housing, in-person learning and virtual options.
Tampa General Hospital is the next-largest employer, with more than 6,700 employees. The hospital has overcome a tough year with COVID-19 and continues to offer information and updates as well as expert care and service. This hospital also was recognized as one of the top hospitals in 5 specialty areas: gastroenterology, orthopedics, cardiology, nephrology and its caring crafters program.
Another major employer is the Moffitt Cancer Center, which employs more than 5,000 people. This is the top cancer hospital in Florida, with specialized treatment plans and in-depth research programs. It also offers clinical trials and several diagnostic services.
The Bottom Line on the Tampa Real Estate Market
As the Tampa real estate market shows a promising future for sale and rental prices, as well as a prospering economy, the city is also just a great place to be. The sunshine and ocean, along with the job opportunities, top colleges and hospitals, prove that there is something for everyone. Investors who have been on the fence about moving into this territory should take the next step and get in while the market is hot.