Tampa real estate

Is 2023/2024 a good time to move to Tampa?

Famous for its beautiful beaches, lively atmosphere and, as of late, bustling real estate activity, Tampa is clearly a city on the rise. If you’re considering making a move to or investing in the Sunshine State, the Tampa housing market should definitely be on your radar. From median home prices skyrocketing to environmental concerns, there’s much to discuss. Let’s dive into the somewhat murky waters of the Tampa housing market, shall we?

Critical trends in the Tampa housing market

Tampa is becoming a magnet for homebuyers and investors alike. As the city’s popularity continues its upward trajectory, several key trends in the housing market have emerged, shaping the future of Tampa real estate.

Soaring home values and quick sales

Let’s talk turkey, and by that we mean pricing. The median sale price of a home in Tampa has soared to a jaw-dropping $460,000. To give that some context, that’s a 21.1% hike from just a year ago. But it’s not just the overall price; the price per square foot is also showing a robust upward trend. Currently, it sits at $285, up 9.6% year-over-year.

What about how fast homes are selling in the Tampa housing market? Let’s put it this way: if Tampa homes were marathon runners, they’d be close to setting world records. On average, a home in Tampa will receive about three offers and take around 20 days to sell. That’s a touch slower than the 18-day average from last year, but by no means sluggish.

Current inventory in Tampa’s real estate market

In August 2023, the Tampa housing market saw the sale of 609 homes. This might seem like a busy month, but it’s slightly down from 626 homes sold in August of the previous year. Whether this slight drop is an anomaly or a signal of things slowing down is yet to be seen. We’ll keep you updated on the Tampa housing supply as time passes.

Migration trends to and from the Tampa area

From beach bums to young professionals fresh out of college to newly minted retirees looking to lay down roots one last time, people are making their way to Tampa in droves. And with good reason.

The appeal of the Tampa housing market

The Tampa housing market isn’t just pulling Floridians; it’s drawing interest from other metro areas as well. Specifically, house hunters from New York, Washington and Chicago are paying special attention to Tampa. This accounts for 2% of total homebuyer interest, and given the size of the national market, that’s significant.

Staying local vs. moving out

While Tampa is attracting outsiders, many residents are choosing to stay put. From June to August 2023, 69% of Tampa homebuyers were looking to stay within the Tampa metropolitan area. However, the wanderlust still exists for a good chunk (31%) of the population, who are exploring greener pastures in Sarasota, FL, Orlando and even Asheville.

Tampa real estate market risks

Like all housing markets, Tampa’s comes with its fair share of risks. While Florida may be known for year-round stellar weather, coastal winds, heavy rains and heat damage are always on the table in The Sunshine State.

Environmental concerns

Life’s a beach until you have to consider natural hazards, right? The Tampa housing market isn’t exempt from environmental risks. According to data from the First Street Foundation:

• Flood: A whopping 43% of properties have extreme flood risks over the next 30 years.
• Fire: Only about 15% of properties are at wildfire risk.
• Wind: Hold on to your hats; 100% of properties in Tampa are at risk for severe wind events.
• Heat: Almost every property — 99% — faces an extreme heat risk.

Transportation compared to national average

When considering a move, commute and accessibility are vital. In terms of walkability, Tampa has room for improvement, scoring 50 out of 100. Public transport isn’t Tampa’s strong suit either, with a score of 31. However, if you’re a cycling enthusiast, rejoice! Tampa scores a 55 in bikeability.

Concluding thoughts on the Tampa housing market

The Tampa housing market is a blend of rapid growth, diverse buyer interest and environmental risks. Prices are soaring, and homes are selling fast. It’s a market that demands swift decision-making, but also due diligence, especially when it comes to natural hazards.

From local residents switching neighborhoods to out-of-staters seeking sunnier days, Tampa’s allure is undeniable. Whether you’re a buyer, a seller or an investor, understanding these complexities will stand you in good stead in navigating the ever-changing Tampa housing market.

Tampa rental market

Switching gears, let’s examine another vital aspect of the Tampa housing market, rentals. With the surge in home prices, many people are instead settling down in apartments, albeit at increasing costs. The Tampa rental market has seen its own set of fluctuations:

The average rent for apartments in Tampa oscillates between $1,667 and $1,910, depending on the number of bedrooms you need.

Rental price ranges

If you’re wondering about the range of price in rents, here’s how it looks:

• Less than $1,000: Around 5% of apartments fall within this bracket.
• $1,001-$1,500: About 10% of apartments lie here.
• $1,501-$2,100: This is where 32% of apartments are priced.
• Above $2,100: A surprisingly large proportion, 53%, fall in this high-rent category.

Neighborhood trends in the Tampa rental market

Different neighborhoods, naturally, command varying rents. While Northwest Tampa saw a dramatic 49% increase in average studio rents to $1,875, areas like Channel District, Harbour Island and Southeast Tampa have seen decreases, ranging from 4% to 5%. On the more affordable end, North Tampa, Terrace Park and Lowry Park North offer one-bedroom apartments for around $1,250 to $1,295 on average.

For those seeking luxury, the Hyde Park Historic District and Harbour Island top the list, with one-bedroom apartments renting on average for more than $2,600. Popular neighborhoods like South Seminole Heights and Tampa Heights offer one-bedroom apartments for averages of $1,500 and $1,300, respectively.

How Tampa rent compares to other cities

For a broader perspective, let’s compare Tampa to other nearby cities. In Tarpon Springs, a studio will cost you around $2,100. Saint Petersburg has seen a 7% increase in one-bedroom rentals, now at $1,954. Sarasota, on the other hand, has seen a 3% decrease in rental prices, now at an average of $1,600 for a one-bedroom apartment.

Final thoughts on the Tampa rental market

Whether you’re buying or renting, the Tampa housing market is a hotbed of activity, with tons of opportunities and challenges. Rising rents reflect the growing demand and low supply, much like the situation in the home-buying market. Neighborhoods offer a range of options, from the affordable to the luxurious, each with its own set of pros and cons.

In summary, understanding the intricacies of the buying and rental markets in Tampa is essential for making an informed decision. After all, whether you’re settling down permanently or just passing through, the Tampa housing market has something for everyone, at every price point.

So, come for the sunshine, stay for the lifestyle — just make sure you’re well-prepared for the financial journey that lies ahead. Your dream place in Tampa is just a few clicks away.

Rent prices are based on an average from Rent.’s multifamily rental property inventory as of July 2023.

Other demographic data comes from the U.S. Census Bureau.

The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com