Jay Roberts of Prosper Group discusses the hot Tampa real estate market
Like most of the country, Tampa has experienced a robust real estate market, even in such an uncertain economy. Zillow actually just named Tampa the hottest U.S. real estate market for 2022, citing that home values ââin Tampa are expected to rise 24.6%, well above the national average of 14.3%.
Jay Roberts is the CEO and Founder of Prosper Group, a Florida real estate developer specializing in new homes and rental properties. Below, Jay discussed the main trends contributing to the Tampa real estate boom that is currently underway.
Tampa Ranked # 1 in Trending Real Estate Markets of 2022
Realtor.com’s forecast of the top 30 housing markets for 2022 also ranks Tampa as one of the hottest cities in the country for real estate.
Jay Roberts of Prosper Group says the forecast is based on projected price increases and sales among the top 100 metropolitan areas nationwide. The Tampa-St. The Petersburg-Clearwater area is the top-ranked Florida region on Realtor.com’s list. The company predicts that sales in the region will increase 9.6% from 2021, with a price increase of 6.8%.
This causes the combined year-over-year price change and sales to increase 16.4% from a year ago, according to Roberts.
Palm Bay-Melbourne-Titusville, Fla. Ranked 16th on the list, with the Orlando-Kissimmee-Sanford region coming in at 22nd and Lakeland-Winter Haven at 29th.
Salt Lake City, Utah was named the # 1 hottest market in 2022, followed by Boise City, Idaho, Spokane Valley, Washington, Indianapolis-Carmel-Anderson, Indiana and Columbus, Ohio.
Businesses are gobbling up real estate
A quarter of all homes bought in Tampa in 2021 from July through September were bought by corporations and investment firms, according to a Redfin study.
Jay Roberts of Prosper Group notes that this is a high rate compared to the rest of the country, where 18% of homes are bought by businesses or investors. Even as rental prices have risen and real estate inventories have declined, the share of homes bought by the business instead of those bought by individuals has almost doubled compared to the same period in 2020.
Of the 20,000 homes sold between July and September in Tampa, about 5,000 were bought by investors, with $ 282,100 as the median sale price. Overall, home prices in the Tampa-St. The Petersburg-Clearwater area grew 25.2% during this period.
Rent Surges in Tampa Bay
Another big sign of the buzzing real estate market in Tampa: record rent increases.
A Redfin study finds Tampa’s rent rose an unprecedented 28.4% from a year earlier, the largest rent increase in the nation.
It is the massive increase in demand that is fueling the rapid increases in rents. New residents are flocking from out of state, attracted by the region’s natural beauty, robust economy and favorable cost of living. As a result, the apartment building vacancy rate fell to a record low of 4.4%.
The report also found that the average monthly rent in Tampa was $ 2,065, higher than the national average of $ 1,985. Mortgages also rose in the United States to 19.9%, while the average mortgage loan in Tampa was up 27.3% from 2020, with average monthly mortgage costs of $ 1,336.
Jay Roberts of Prosper Group says that with Tampa ranking # 1 among cities with rent increases, it is one of five Florida cities in the top 10. The top three cities are all in Florida: Tampa , Miami, and West Palm Beach have all seen big rent increases.
Tampa neighbor sees big apartment buying
Jay Roberts of Prosper Group reports that an investor from New York bought a set of seven apartment properties south of St. Petersburg for $ 16.8 million, highlighting the growing market south of downtown.
Sabal Palms Owners LLC acquired properties from local partners in four separate transactions in December. The properties should appear to tenants both affordable and at market price, said one of the representatives involved in the deal.
The sale is just one example, says Roberts, of the growth seen in southern St. Petersburg, just 30 minutes from Tampa. Several major projects are underway, including residences at 400 Central and a mixed-use site near the Tropicana lot.
Inauguration of the 449-unit apartment project in Tampa
The Altman Companies has started work on its new 449 unit in Lutz, Florida, with the first units scheduled to open in 2023, reports Jay Roberts.
The community, called AltÃs Grand, includes luxury one, two and three bedroom floor plans. Coworking lounges, a club house, a swimming pool, a fitness center and an internet cafÃ© are also planned. The property is also designed to be very green, with energy efficient appliances, lighting and charging stations for electric cars.
The AltÃs Grand is close to the busy Suncoast Parkway, connecting major cultural and entertainment attractions as well as employers. It is the fifth community that Altman Cos. developed in the Tampa area.
Price increases set Tampa Real Estate apart
According to the Associated Press, Jay Roberts of Prosper Group said that in September, Tampa recorded the second highest nationwide home price increase in a metropolitan area, just behind Phoenix.
Tampa saw a 27.7% increase in home prices this month, with an average home in Tampa Bay for $ 316,379. Zillow found that homes spend an average of six days on the market before a sale. Local real estate agents believe prices will continue to rise much more in 2022, with buyers targeting not only Tampa, but Ruskin, Ybor City and southern St. Petersburg.