Despite the challenges faced by the entire US real estate market, the situation in Tampa, Florida, remains relatively favourable due to a strong labour market, a low inventory of housing, and a continuously growing population. The forecast for 2023 is also optimistic: experts expect a growth of demand, a low supply, and high prices, at least for move-in-ready properties in the Tampa—Saint Petersburg—Clearwater metropolitan area.
The development of single-family houses was unstable last year. It peaked in May, when 1,603 construction permits were issued. By December, their number reduced to 882. In the first quarter of 2023, the situation began to improve, but still has not reached the level of early 2022. Over the past three months, 2,808 single-family construction permits were issued in Tampa. A year ago, there were 3,949, which shows a 29% decline.
On the other hand, 4,046 multi-family construction permits were issued in Tampa in the first quarter of 2023, which is a whopping 314% more than a year ago. Their number grew from 326 in January to 1,466 in November over the course of the previous year.
There are now enough houses listed for sale in Tampa to satisfy the demand over 2.4 months. This is more than last year, when the inventory would cover 1.6 months, but a balanced market is supposed to have 6.5 months’ worth of inventory.
The median price of a residence in Tampa reached $364,000, which is less than $393,000 in summer 2022 but still 3.1% more than in Q1 2022, according to Redfin.
As for rent, it grew by almost 5% last year and reached $2,100 per month in December 2022. The US average is $1,978.
Selling prices and rental rates in Tampa continue to rise because of the growing population, among other reasons. According to the US Census Bureau, 4,000 new residents came to Tampa from April 2020 to July 2021. An impressive 50,000 people have moved to this area since 2010.