The Tampa real estate market was ranked as one of the top twenty American real estate markets in 2018. Real estate industry analysts predict that Tampa will be one of the hottest real estate markets in the U.S. in 2019 as well.
Tampa Bay is hitting lists of the top ten markets for real estate investors. Let’s take a look at a few reasons why Tampa’s real estate is so hot right now and why you should consider investing in it.
The Job Market
While the location is touted as the most important thing in real estate, the real mantra is jobs, jobs, jobs. People move from across the country to a hot job market. Tampa’s economy is worth more than 130 billion dollars, and job growth is a little over 2% per year. Tampa’s unemployment rate is half a percentage point below the state average, and it is a full percentage point less than the national average. This explains why the city is the third best place to find a job.
Job growth in Tampa is present in categories as diverse as healthcare, finance and high tech. These jobs attract millennials to the Tampa area, fueling demand for apartments and single-family homes. Baby boomers also choose to move here to retire, further increasing demand for Tampa real estate.
Like the rest of the country, Tampa is currently dealing with an inventory shortage. However, in this case, this is a good thing.
The median price for homes is still very reasonable, especially in some developing regions. You can also find tons of incredible hidden gems, i.e. properties that are priced right when you work with a good Tampa realtor and soon, with the demand for property, the area has nowhere to go but up. Predicted home price increases range from 1.8% to 6%, depending on the source, but everyone agrees they will rise. The limited inventory also ensures that there will be continued demand for rental property from those who cannot afford to buy.
The Strong Return on Investment
Housing prices are only one side of the ROI equation. The other factor is the median rent per month. In the Tampa housing market, that is roughly $1600 per month. This results in an 11.8 price to rent ratio for the median home. You can still charge a thousand dollars a month in rent in cheaper Tampa neighbourhoods.
None of this considers what you could earn renting out the property to tourists, and Tampa is one of the top tourist markets in the country. Also, unlike other hot tourist markets, short term rentals are legal in Tampa. The only requirements are zoning rules that prohibit short term rentals in some neighbourhoods and the obligation to pay sales and rental taxes.
Tampa has a low cost of living and high quality of life, giving people several reasons to move and stay here. However, the strong market fundamentals make it an excellent place to invest in real estate.