Tampa Real Estate Market – An Insider’s Look
The Tampa real estate market has been soaring over the last year, with an increase of almost 6% in housing prices during 2015 (Time News, Money section). It has definitely been a seller’s market, with limited inventory and increased demand. In fact, according to Moody’s Analytics, Tampa-St Petersburg has seen the most dramatic pricing increases already after the housing crisis. Nevertheless, there are still great investment opportunities to be had – especially due to the escalating importance of the Tampa Bay area as an economical stronghold.
Why is the Tampa real estate market booming?
Let’s take a look at some of the main reasons contributing to the spike in real estate prices in the Tampa area:
The Florida’s Business Observer notes that foreign investments are at an all time high in the US, especially Florida. Tampa and Miami are the main cities in Florida targeted by foreigners as “safe havens” for their real estate investments.
A lot of ‘baby boomers’ are turning their attention to Florida for their retirement years. Tampa is particularly appealing for those with a more laid back lifestyle, as compared to Miami. And the weather is more pleasant, with less humidity and heat than the East Florida coast.
Harris Poll survey has stated that Florida is the favorite place to live of most Americans, surpassing even California, Hawaii, Colorado and New York. Tampa, in particular, has made the “5 Best Big Cities” list according to Money magazine.
How is Tampa’s real estate market affecting investors?
According to GoBankingRates, which ranked the top 15 US cities in which to own investment property, Tampa ranked second. Three more cities in the top 15 list are also in Florida (Orlando is first, Miami is 10th and Jacksonville 13th), which makes Florida the only state with 4 cities on the list.
One of the main reasons Tampa has been particularly attractive to real estate investors is the availability of distressed inventory, due to the past foreclosure crisis. There is still a lot of inventory of real estate owned (REO) property reclaimed by banks, as well as upcoming foreclosures. Tax delinquent property is also at an all time high – with an inventory of almost 180, 000 properties across 7 counties (including Hillsborough county, which Tampa is part of) forming the greater Tampa-St Petersburg area.
What makes Tampa’s real estate market outlook so bright?
With 4 million people tucked into seven counties, Tampa is currently home to 22% of Florida´s population and has 22% of its labor force. Large corporations have settled their main offices in the Tampa Bay region: JPMorgan Chase, Citigroup, MetLife and Coca-Cola Enterprises, just to name a few.
A lot of money has been put into building up the infrastructure to support the expanding population and development. As a matter of fact, Tampa-Orlando-Miami is a “power triangle,” which has developed in the 15th largest economy in the world.
Real estate investors who want to thrive in the business must always try to stay ahead of the curve, find out where the money is being invested and where the highest market demand exists, and fill those needs. The Tampa real estate market definitely offers many opportunities for real estate investors in the upcoming years. Tampa’s supply and demand – driven by a strong economy – are strong indicators of a healthy and viable market for real estate investing.