Tampa provides a unique opportunity for investors looking for promising property investments. In a Tampa Bay Times report, Tampa Bay was the seventh most popular metropolitan location for investors in the United States. Its housing market has been rising steadily, and house prices have increased significantly, providing strong evidence that homes will continue to appreciate.
What makes Tampa a great investment opportunity
Several factors make Tampa Bay real estate a lucrative investment. Its thriving local economy, reputation as a fun tourist destination, fantastic weather, and growing infrastructure are just a few. Coupled with this is its booming property market fueled by limited inventory, a rising population, and comparably low interest rates.
Limited inventory
The tension between a limited supply and high demand lies at the heart of this propulsion. The supply of homes in Tampa cannot match the increasing demand, and although there are plans to build 10,000 new homes by 2027, this high demand for Tampa properties is likely to continue. According to the National Association of Realtors, nationwide housing inventory fell by 910,100 in December 2021, down 18%, making this a seller’s market. Tampa has followed this trend. As of September 2022, there were 1,826 available listings for sale in Tampa.
High demand for properties has led to soaring house prices. The average median price of homes was $614,497 in Tampa as of September 2022, significantly higher than the US national average of $440,300. Demand for housing is so high buyers find themselves in bidding wars and paying over the asking price for cash. In popular neighborhoods, homes for sale go quickly. High demand coupled with low inventory means house prices will continue to rise. The most lucrative strategy for investors is to buy properties to rent. Tampa is increasingly a city where it has become more beneficial for people to rent than own. The high price-to-rent ratio of 20 means over half the population of Tampa is renters.
Population rising and quality of life factor
Population growth fuels rising property demands. Tampa’s population is around 394,809, growing steadily at a rate of 1.26% annually. Over the past two years, the population has grown by almost 10,000. People are moving to Florida attracted by its warm weather, favorable tax laws, beautiful views, and employment opportunities. The labor force in Tampa increased by 4.1% while the unemployment rate dropped. The city has become one of the best places to find employment.
The average income per capita is $37,834, higher than the US average of $35,384. As more people work from home, living near work has become less of an issue. Consequently, this is an opportunity for people to move to cities with better living conditions without losing their jobs.
Young professionals and retirees are moving to Florida, buoyed by its quality of life. Entrepreneurs are doing the same, buoyed by growing business opportunities in Tampa.
Quality of life concerns are pushing the rise in population. The general cost of living is 5% lower than the national average, and utility prices and housing expenses are lower too. Transport costs are cheaper than the national average by 2%, while healthcare expenses are lower by 4%. A rising population means an increased demand for housing.
Short-term Tampa rental properties provide a rewarding investment
A thriving economy and rising population provide rewarding investment opportunities for property investors, particularly investments in rental properties. More people living in Tampa means an increasing demand for places to live. As real estate prices continue to rise, fewer people have the means to buy their own homes and opt to rent. Less than half of the Tampa population own their own homes, which means more people rent. Right now, it is more affordable for almost half of the Tampa population to rent rather than own their own home. Tampa has a price-to-rent ratio that leans heavily in favor of investments.
Rehabs and flips, popular property investments, do not have the same profit margins they used to. The prospects of building a quality rental property portfolio in the Tampa housing market are very appealing. Investing in rental properties is profitable. It provides a source of passive income while investors enjoy the potential for long-term growth as renters and rental income continue to increase. The market promises substantial appreciation and promising returns. Invest in properties close to amenities and public transport and near where there are several job opportunities. Most working residents want to stay in properties near work. Oakford ranks high for both traditional and short-term rental rewards.
Tourist properties are another lucrative investment
Florida remains one of the top tourist destinations in the United States. In 2021, Florida received 14.8 million visitors, and that figure will continue rising. Tourists need places to stay. Tampa is one of the top tourist destinations thanks to its scenic views, beautiful beaches, and tourist attractions like the Florida Aquarium, Hillsborough River State Park, and Busch Gardens. Downtown Tampa restaurants, like Goody Goody Burgers and Spinners Rooftop Grille, with its panoramic ocean views, are popular attractions.
Consequently, the Airbnb rental market and other vacation rentals are excellent investments. The growing tourism market keeps the demand for vacation rentals high. Airbnb rental market is another lucrative investment.
Interested in investing? Work with The McIntosh Group
South Tampa real estate is a potential property investment for investors. House prices in the area are rising and will continue to increase at a rate of 6.5% yearly. It is one of the most sought-after locations and will continue to be so over the next decade. It is an ideal area for property investments, especially as its population grows and rental properties become more lucrative. For investors interested in more information about Tampa property investments, contact Jason McIntosh at The McIntosh Group and let the team’s experience and knowledge guide you.