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Tampa Investment Property: 5 Reasons to Invest in Tampa Real Estate
Make no mistake about it: Tampa was one of the hottest housing markets in the country in 2022. According to Zillow, the Tampa market's chart-topping credits featured a combination of strong forecasted home value growth, a thriving job market, relatively scarce and fast-moving inventory and demographics that indicate a good number of potential buyers.
As we move into 2023, Tampa housing market predictions remain strong, with housing experts forecasting that home prices will continue to go up amid the rising demand, and new inventories are expected to become available any time soon in 2023.
With that kind of love still defining the areas, here are 5 reasons you should invest in Tampa real estate.
No 1 — Population Expected to Grow
According to the latest US Census estimate, Tampa is currently home to nearly 395,000 people. Riding the wave of its various No. 1 rankings as a supreme housing destination, the area's population increased by around 10,000 over the past two years. The growth created even more demand for housing, which also impacted the available inventory and home prices. With more growth expected, Tampa's real estate is expected to keep pace.
No. 2 — Jobs. Jobs. Jobs.
With an increase in population comes an equivalent rise in job opportunities. Along with nearly a 5.7% increase in jobs, according to the Tampa Area Private Sector Employment numbers, the Tampa area gained the second highest private sector jobs among other metro areas in Florida. In addition, the average per capita income in Tampa is $37,834, which is slightly higher than the US average of $35,384.
No. 3 — Housing Market Streak to Continue
Bolstered by its population and job growth, Tampa's housing market is expected to surge. A deluge of new residents will create demand. The only challenge will be whether or not current housing inventory can keep up. Right now, the housing market demonstrates an average annual appreciation rate of 5.76%. Home values in Tampa are up 247.45% compared to the year 2000 levels. Because of the high appreciation rate, less than half of Tampa’s population owns a house. With the high price-to-rent ratio of 20, more than half of the population are renters.
No. 4 — Rentals, Tourists, and the Like
As one of the country's premier vacation destinations, the Tampa area continues to provide a boon for vacation rentals, especially as the country further adapts to a pre-pandemic landscape. Privately owned rental destinations, complemented by services like Airbnbs will continue to make real estate investment favorable. In addition, depending on housing inventories to buy, renting has become a more practical opportunity. As a result, rental properties in Tampa will continue to thrive. With more than 52% of Tampa’s residents renting homes, the traditional rental market offers a good opportunity for new investors looking to invest in single family homes and apartment complexes.
No. 5 — It has to be the Taxes
With a state sporting zero individual income taxes, while homeowners may have to pay state franchise tax, they still can enjoy a lower tax burden compared to most states elsewhere. This continues to make Tampa one of the best places for property investments.
Posted by Smith & Associates Real Estate on
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