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…