As the economic hub of West Central Florida, Tampa continues to grow in size and real estate investment prospects. The recent pandemic hit cities across the country hard, but Tampa is continuing to show incredible resilience. The current status of the city is pointing toward an incredibly promising real estate future, and Upright is proud to work with real estate investors dedicated to pushing this amazing city toward success!
1. Strong Local Economy:
With a local economy worth more than $130 billion and a diverse mix of tourism, health care, finance, technology, and maritime industries, Tampa’s economy is one of the leading factors in the city’s unprecedented growth and success. Combine this with decreasing unemployment rates, stable median income, no state income tax, and its new title as the best city in Florida, and it becomes clear why Tampa is ranked 4th in the country for the largest net flow of new residents. Much of the city’s recent population growth is partially due to the pandemic, which led to many people fleeing large cities in northern states for temporary stays in sunny Florida. These temporary moves soon became permanent due to the increase in remote work. According to the 2020 Miami Report, an average of 950 people move to Florida every day, with the majority hailing from larger, more expensive cities such as New York, Chicago, and Boston. With a cost of living that currently sits 8% below the national average, Tampa provides the perfect opportunity for those looking for a large city feel without breaking the bank.
2. Tech Boom:
Tampa’s expansive economy is home to an impressive up-and-coming tech and startup scene, and was recently ranked the #1 small tech market in the United States. While many cities struggled to reboot their job market after the pandemic, Tampa is among some of the top markets showing job growth above the national average, with the tech industry leading the pack at a 5-year growth rate of 26.6%. The startup scene in Tampa has continued to grow over the years, and a recent $20 million seed fund by Tampa Bay Ventures sets the tone for a promising future for many startups in the city. Andreas Calabrese, a General Partner of Tampa Bay Ventures, states that Tampa is “one of the best places in the country to build a tech company.” While a lack of funding has been noted in the past as a significant drawback to the success of Tampa’s startup scene, this development goes to show that Tampa and its entrepreneurial spirit aren’t backing down any time soon.
3. Job Growth:
Positive job growth and a reputation as one of the most affordable metro areas in the country has continued to draw in an increasing amount of young professionals to the city. Not only has Tampa’s millennial population grown 14.5% since 2014, but the city is also becoming increasingly diverse; in a 2019 study by HelloTutor, Tampa was ranked #10 for the most diverse large cities in the country, and recent studies show only 42% of U.S.-born Tampa residents were born in Florida. These trends will no doubt lead to increased urbanization and more youthful neighborhoods, and this younger, highly educated population is likely to increase as Tampa’s promising tech scene continues to grow. Tampa is home to several higher education institutions such as The University of Tampa and The University of South Florida and must entice these students to stay in the city after graduation. According to many university students, Tampa has done just that. One of the city’s strengths lies in its ability to give residents the best of both worlds; young professionals can find themselves in a bustling city full of resources and opportunities, but they can also take a quick detour at some of the most beautiful beaches in the country.
Along with its job growth and millennial increase, Tampa’s real estate market is doing incredibly well in light of the recent pandemic. In a recent study by Realtor.com, Tampa was ranked in the top 10 cities in the country for homebuyers and homebuilders with U.S Census data showing building permit applications rising 24% in the last year. Tampa’s previously mentioned population growth, fueled by the pandemic, is a leading factor in the current housing boom, with new residents putting down roots in the city and increased demand for larger spaces that can accommodate home offices. A $25,000 homestead extension and a lack of state income tax are just a few of the perks that make Tampa an increasingly attractive destination for new home buyers. Tampa also has a leg-up on neighboring cities in Florida, with homes in the Tampa Bay area costing 24% less than homes in Miami.
According to the Zillow Home Value Index, the current value of a home in Tampa averages around $313,136. Along with many other cities across the country, Tampa is currently a heavy seller’s market, with buyer demand far exceeding the current supply of homes. Year-over-year price growth in Tampa is steadily increasing due to low supply, with the city previously ranked as one of the top 10 cities expecting rapid price growth in 2021. With prices predicted to continue rising, many believe it is prime time for real estate investors to move their businesses into Tampa and take advantage of the current prices before they rise even further. Rental prices in the city also saw an increase of 22% since the beginning of 2021, indicating increased demand and possible opportunities for investors interested in rental properties. Tampa’s low supply of homes will likely continue causing prices to rise into the future, and as demand continues to skyrocket for this city due to pandemic migration and an influx of millennials, investors looking to fix-and-flip properties or owned rentals will likely be taking full advantage of these market conditions.
Several neighborhoods in Tampa offer desirable opportunities for investors. If you’re looking to capitalize on the never-ending need for student housing, Temple Terrace and University Square could be great options. These neighborhoods are located by the University of South Florida, and they have quickly become hotspots for fix-and-flippers and rental owners alike with low housing prices creating a hefty profit once repaired. A second neighborhood worth considering is Tampa Heights, an up-and-coming community that has become increasingly revitalized over the years. Just outside of downtown, the city offers an option for those looking for close proximity to their workplace or attractions downtown with more affordable pricing. Highland Pines is the last neighborhood to make the list, currently in the beginning stages of its revitalization efforts. With historically high unemployment and crime rates, many investors are moving into this neighborhood in hopes of revitalizing and creating a positive community impact. As a real estate investor, each of these Tampa neighborhoods offers unique circumstances you’ll want to consider according to your business, but it is clear these up-and-coming neighborhoods offer an abundance of opportunities and have bright futures ahead.
The city of Tampa offers a unique opportunity for real estate investors as its real estate market has continued to prevail despite the ongoing pandemic. The city has even seen positive growth in certain areas, such as a nationwide movement of young professionals and older generations alike moving to the Sunshine State to enjoy the beautiful weather, lively cities, and affordable living. Its strong economy backed by multiple anchor institutions and increasing job growth continue to be positive indicators for the future of Tampa’s real estate market, and we are excited to see how this city continues its remarkable growth and success into the future.
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