Building value: The temperature of the Tampa Bay real estate market is hot and rising, but COVID-19 will likely be a near-term disruptor An attention-grabbing flagship Downtown development, a consistently high ranking as an investment destination and a plethora of positive economic indicators are underpinning the Tampa Bay real estate market. There is little doubt that the industry has a lot going for it, even as the COVID-19 pandemic puts a cloud over the market and cools the segment, at least in the short term. At the time or printing, realtors across the Tampa Bay region had started indicating a pullback in sales. They were also resorting to digital means to show their inventory and close deals, such as virtual showings amid calls for social distancing and self-quarantine to fight the virus. But the underlying strength in the market should help weather this storm. Among its signature developments, the city is home to the $3 billion Water Street Tampa development that will transform Tampa’s waterfront. Although certainly the biggest, it’s just one of many high-profile developments breaking ground or already on the market. The booming industry is also one reason why Tampa Bay/ St. Petersburg was again named one of the best markets for housing and house sales in the country, coming in 11th overall in the 2019 study by the Urban Land Institute and PricewaterhouseCoopers. Consistent growth and 58 | Invest: Tampa Bay 2020 | REAL ESTATE
affordable entry makes it a sound bet for long-term real estate investment. Market fundamentals Tampa’s real estate market is characterized by a modest but steady increase in property values, making it a safe place for long-term property investment. Some experts estimate that there is an 84% probability of housing prices increasing in Tampa between now and Q3 2021. Yet prices today are still quite low relative to metros of similar size. This all contributes to making Tampa’s housing market a competitive seller’s market, with homes selling near or at list price within 23 days of going up for sale. The inventory of single family homes in Tampa stood at 4,358 homes in early 2020. The median value of these homes has steadily increased over the past few years and is expected to continue gaining ground. The news is much the same for rental properties, with a supply of affordable multifamily real estate in Tampa that boasts a median monthly rent of $1,485. A variety of other characteristics contribute to Tampa Bay’s housing market strength: the Tampa Bay region has a low unemployment rate, standing at just 2.6% at the end of 2019 compared to the national 3.5% rate in ( )
