Renting is as Competitive as Purchasing a Home in Tampa Bay
The 411 on Tampa’s Rental Market
Tampa’s real estate market is one of the hottest markets in the country. Sunny weather, lower taxes, and quality of life result in an influx of new residents every week, however, the Covid-19 Pandemic substantially increased that number.
According to Fox News Tampa Bay, “”Every day, a thousand people are moving to Florida, and out of that, about 115 move to Tampa every day. You have all these people moving from New York City, moving from DC, moving from Connecticut, moving from Chicago, they’re from expensive cities, even from California! To them, Florida prices are affordable. Whether they’re home buyers or renters, they’re moving here with a lot of money to spend, which is jacking up prices.”
The rental rates in Tampa Bay and surrounding areas have increased 20% from last year placing Tampa in the top 5 metros for highest rent increases. This increase is a result of an extremely sparse rental inventory. At the moment, Tampa’s apartment complexes have long waitlists and private landlords are receiving an overload of applications for just one rental listing.
Another factor contributing to the tight rental inventory are previous homeowners that took advantage of the hot sellers’ market. Due to the low for-sale inventory, many sellers decided to rent until the resale market cooled or are waiting for their new construction home to be completed.
Is it better to buy or rent a home in Tampa Bay? It depends. If you qualify and your moving timeframe allows it, we highly recommend a home purchase (and not just because we’re Realtors.)
Rental rates rarely come back down after increasing, especially in a growing city like Tampa. Right now, some renters are experiencing their lease renewal rates increase over 20%. By obtaining a fixed-rate mortgage, you will be able to keep your largest living cost consistent and earn equity.
Are you ready to live, work, and play in Tampa Bay? Talk to a real estate professional at SI Real Estate Tampa to discuss all your options!