Greater Tampa Investment Property Market

Greater Tampa Investment Property Market Overview

Greater Tampa is among the top 25 largest metro areas in the United States and spans 7 counties with an estimated population of 4.3 mm people. The market has experienced significant recovery since the recession with home values increasing over 70% since 20121. However, home values still remain over 25% below the prior peak and are expected to increase an additional 13% by 20192. This puts Greater Tampa at the top of the list in terms of home price appreciation (HPA) potential over the next 4 years.

High Expected Home Price Appreciation, Strong Yields and Supply Constraints

In addition to strong HPA forecasts for the Greater Tampa market, continued rent growth is expected to keep pace as well. We estimate that rents will increase in the low-double digits over the next four years, which should support high yields and ongoing rent increases.

Another factor that makes Greater Tampa a strong Single-Family Rental (SFR) investment market is that it has the third highest gross rental yield across all U.S. markets. Gross yields in Greater Tampa averaged 12.5%, which is well above the national average of 9.2%3.

Supply of home inventory continues to be constrained as the number of single-family permits remains well below the peak levels prior to the recession. Relative to the other Florida markets, new permits are only a quarter of what they were at the peak levels, while markets like Orlando and Jacksonville are closer to half of the prior peak levels. Limited supply supports higher rents as demand growth continues.

When it comes to underlying fundamentals that drive SFR investment returns (job growth, household growth, income growth, and housing supply), Greater Tampa continues to show strength on all fronts.
  • HPA and rent growth: Some of the strongest home price and rent growth forecasts in the nation
  • Gross yields: Among the highest in the U.S.
  • Decreasing foreclosures: Home foreclosures in Greater Tampa decreased by 38% over the last 12 months4, which supports home values in local neighborhoods
  • High negative equity rate: 24.52% of homes in the Greater Tampa market have negative equity, which is higher than the national average5.
  • Babe Ruth hit his longest home run during an exhibition game in Tampa - it sailed 587 feet.
  • Tampa is home to the world's longest continuous sidewalk, Bayshore Boulevard. It's 4.5 miles long!
  • 1 Zillow
  • 2 John Burns Real Estate Consulting, March 2016
  • 3 John Burns Real Estate Consulting, March 2016
  • 4 Findthehome.com, January 2016
  • 5 Findthehome.com, January 2016

Real Estate Investment Insights

Investment Style: Balanced
While each property will differ, this market is likely to have properties that provide a blend of yield and appreciation.
Inventory:
Home Value *
$172,000
$189,400
National Avg
Home Value Growth (YoY)
9.8%
5.5%
National Avg
Rent **
$1,331
$1,403
National Avg
Source: Financial data from Zillow includes single family, condo & cooperative homes, updated on 11/7/2016
Job Growth (YoY)
3.1%
1.7%
National Avg
Household Growth (YoY)
2.2%
0.9%
National Avg
Estimated Months of Resale Supply
2.8%
4.6%
National Avg
Household Income
$50,200
$57,541
National Avg
Supply, Demand & Affordability data includes single family homes only, updated on 11/7/2016
  • Arrows indicate the directional change since the last update. No arrow indicates that there was no change in the data or no previous data is available.
  • * Home Value: includes all types of housing, including primary resident, condos, investment properties, etc.
  • ** Rent: includes all rental properties, including Single-Family Homes, multi family units, etc.
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