Average Rent in Tampa & Rent Prices by Neighborhood
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The entire state saw foreclosures increase, and the Tampa housing market was no exception. As government moratoriums expire and the economy starts to cool off, Tampa foreclosures continue to rise. According to RealtyTrac, Tampa is home to 707 foreclosures, the majority of which are pre-foreclosures . Another 92 foreclosed homes are either up for auction or will be at some point in the near future.
The ongoing migration into the city in search of well-paying job opportunities supports the advancement of the traditional rental market. Meanwhile, Tampa’s position as a major tourist and business hub reinforces the growth in the Tampa Airbnb rental industry. Real estate investors will further be supported by the high proportion of renters in Tampa. More than half of the population – 53% to be precise – rent instead of own a home. The robust demand by renters vs. homeowners is driven by the high price to rent ratio. Mashvisor’s real estate market data for Tampa shows that the price to rent ratio in the Tampa housing market will amount to 21 in 2020.
Tampa Housing Market Trends Are Generally Good
This Florida city brims with attractions, arts and culture, business, and sports. Tampa is home to the famed Busch Gardens theme park, an aquarium and zoo, and the popular Riverwalk. Enhanced Cost of Living CalculatorNow includes childcare, taxes, health, housing for home owners vs renters, insurance costs and more when you upgrade to premium. We donate 10% of all profits earned through real estate transactions. The Westshore Marina District will have marina landings and retail space that can accommodate yachts up to 100 feet in length. The development will also be home to residential units, office space, hotels, restaurants and retail stores designed for both residents and visitors alike.
Experts’ predictions point out that the steady population growth in the Tampa Bay area is one of the factors that will keep Tampa real estate a hot market. With many people wanting to move to Florida, particularly to the Tampa Bay area, we can expect that the demand for Tampa housing will continue to rise in 2023 and over the years. As per the Tampa housing market predictions in 2023, the Tampa housing market will remain hot.
The Traditional Rental Market Will Continue to Thrive
Low inventory plus strong interest from out-of-state cash buyers and investors has been a major factor causing the jump in prices. According to a recent Redfin report, 24.5% of Tampa homes were purchased by investors in the third quarter of 2021. Buy-and-hold investors often use the “1% Rule” or “2% Rule” as part of their purchase criteria—but in today’s rental market, that might prove to be too high a hurdle for even the most patient investor. As a result, investors want to buy properties that meet 0.7% (i.e. the ratio of rent to sales price is 0.7% or more). The hot housing market is driving demand for rental properties in the Tampa metropolitan area.
Since many residents cannot find a property that they can afford to buy, renting is their best option. It is why the best strategy for Tampa investors is to buy properties and rent them out as traditional rentals. As mentioned, many real estate investors are taking advantage of the hot Tampa housing market. Since experts believe that Tampa properties will appreciate in 2023 and beyond, investors are buying properties and getting hold of them before selling them at a higher price. The Tampa housing market is helping to set the pace of the national real estate industry. Demand, appreciation, inventory, and almost every other metric characterizing the Tampa real estate market are outpacing their national counterparts.
Compare Median Rent in Markets
The median price of single-family homes in Hillsborough County has grown by 27.8% to $428,000 as of May 2022. The dollar volume in Tampa St. Petersburg Clearwater MSA was $2.3 Billion (+16.2% YoY) and year-to-date, it was $9.9 Billion (+16.5% from last year). It is simply the sum of all sale prices in a given time period but it is a strong indicator of the health of the real estate industry in a market. The cost of buying a home in Tampa Bay continued to increase in May, with the median sales price for single-family homes hitting $413,108 according to the latest data from Florida Realtors.
It is not only a growing real estate market, but it is also one of the most popular recreational hubs of the city. Don’t make the same mistake that many others make – namely, staying away from long term rental investments because of assuming that this turns you into a landlord. It’s true that not everyone was born to be a landlord, and that’s hiring a professional property manager has become such a popular option in the US housing market.
Rental property investors who want to take advantage should better start looking for an affordable home for sale to rent out for the long term. The best place to buy rental property is about finding growing markets. Cities like Sarasota & Largo are good for investors looking to get started with rental property ownership at an affordable price. These cities look good for rental property investment this year as rents are growing over there.
Besides, attributable to the reasonable home values, the overall amount of Tampa real estate taxes is not a dealbreaker for investors. A high price to rent ratio means it’s more practical for residents to rent than buy a home. It is also one of the reasons why many rental property investors are investing in the Tampa housing market, and the trend is expected to continue in 2023 and beyond.
St. Petersburg real estate market at position #11 among the 80 surveyed markets for the upcoming year. According to the Tampa real estate experts who were interviewed for the report, the quality of life and the talent pool constitute the key positive factors. Some negative influences, however, encompass the existing challenges in physical and soft infrastructure including education, marketing, and regional collaboration. Despite these obstacles, being ranked as number 11 by such a prestigious publication is definitely a very optimistic indication. Yardi Matrix covers ~80% of the U.S. metro area population, including over 80,000 properties and 15.2 million apartments across 124 U.S. markets.
According to Greater Tampa REALTORS®, Hillsborough County saw a nearly 13.2% decrease in single-family home sales compared to the same month last year while Pasco’s sales increased by 2.6%. The development of the Tampa real estate market has been supported by a diverse and strong economy. The main economic sectors are many and include finance, insurance, real estate, healthcare, air and sea shipping, and professional sports.
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