2019 Tampa Real Estate Market Forecast

Should you buy an investment property in Tampa? Learn more about the Tampa real estate market trends and forecasts for 2019 to find out. 

Location is an important aspect of real estate investing so, of course, you’d want to invest only in the best locations to make the most of your investment. As 2018 winds down, property investors are planning for their next real estate investment, but where should they invest? Well, PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI) released the Emerging Trends in Real Estate Report for 2019 which lists the top 10 places to invest in real estate in the US. In this year’s report, and for the first time in 40 years, the Tampa real estate market has finally made the list! Keep reading to learn more about why and where to invest in Tampa in 2019.

Related: 10 Best Places to Invest in Real Estate in 2019

Tampa Real Estate Market

Tampa’s Economy

The first thing that’s helping Tampa is the fact that it’s in Florida, one of the best states to buy an investment property. The Sunshine State continues to have a strong housing market and, according to the Emerging Trends Report, “Ten Florida markets have fully rebounded from the disruption caused by the global financial crisis.” Almost all cities in Florida have growing economies with healthy job growth.

Tampa, in specific, started 2018 on a real economic high, just like it did the previous year. In 2017, Tampa added 31,900 new jobs in the private sector, the 2nd highest number of jobs among all Florida metro areas. So far this year, the Tampa Bay area has already added yet another 30,000 jobs. Moreover, Tampa has an unemployment rate of 3.6% – lower than the national average of 3.9% and the Florida average of 3.7%.

This strong economic performance is helping to fuel the Tampa real estate market. For one thing, the employment growth rate in Tampa is expected to be above the national rate in 2019. This is boosting population trends in the city. In fact, for the past 5 years, Tampa has been benefitting from strong annual net migration and is now one of America’s Fastest Growing Cities, according to Forbes.

Tampa’s Property Prices

Another reason why property investors are strongly interested in the Tampa real estate market is due to the lower prices for homes and condos. According to Zillow, the median home value in Tampa is $218,000, which is a very affordable price compared to other metros like San Francisco and New York City. Furthermore, Tampa home values have gone up 11.2% over the past year and Zillow predicts they will rise 8.4% in 2019.

While home values are expected to rise, sellers in the Tampa housing market are cutting their asking price since no offers are coming in. According to gordcollins.com, the increasing property prices and mortgage rates are making it harder for first-time homebuyers to place an offer. As a result, overpriced properties are staying longer on the market. This price mismatch between prospective buyers and those wishing to sell leads to another Tampa real estate market forecast which is: Tampa remains a buyer’s market!

Related: The 2019 US Housing Market: A Seller’s Market or Buyer’s Market?

Well-prepared real estate investors looking to buy investment properties can find great deals. Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties in the Tampa real estate market that match your criteria in a matter of minutes!

Supply and Demand

Of course, real estate prices are determined by the supply and demand in the housing market. So, the reason behind the rising property values in Tampa is the aforementioned fact that people are moving to the city. This growing population will obviously need places to live and is, thus, increasing the demand for housing – especially single-family homes.

Related: Investing in Single Family Homes: Why It’s a Must

According to Norada Real Estate Investments, construction activity (mostly for single-family homes) in the Tampa real estate market has risen by nearly 12%, up to 20,000 permits in 2018. Furthermore, the Emerging Trends Report placed Tampa as the second best market for home-building activities in 2019! All of these trends lead to another housing market forecast for Tampa, which is: strong absorption as supply is keeping up with the demand. This made Tampa the second best city for real estate investors in the South Atlantic and Florida Region, according to the PwC.

Tampa Real Estate Market

Where to Invest in the Tampa Real Estate Market

This is all good news for real estate investors planning on buying an investment property in Tampa. Let’s take a look at the best Tampa neighborhoods where you should consider investing. All the data presented below is provided by Mashvisor’s Investment Property Calculator. To get your hands on this kind of data, click here start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after.

Tampa International Airport Area

  • Median Property Price: $318,737
  • Price Per Sq/Ft: $169
  • Traditional Rental Income: $2,038
  • Airbnb Rental Income: $3,118
  • Traditional Cash on Cash Return: 4%
  • Airbnb Cash on Cash Return: 6%
  • Price-to-Rent Ratio: 13
  • Airbnb Occupancy Rate: 54%

Old Seminole Heights

  • Median Property Price: $240,839
  • Price Per Sq/Ft: $171
  • Traditional Rental Income: $911
  • Airbnb Rental Income: $2,482
  • Traditional Cash on Cash Return: 2%
  • Airbnb Cash on Cash Return: 6%
  • Price-to-Rent Ratio: 22
  • Airbnb Occupancy Rate: 70%

Sulphur Springs

  • Median Property Price: $161,778
  • Price Per Sq/Ft: $128
  • Traditional Rental Income: $954
  • Airbnb Rental Income: $1,918
  • Traditional Cash on Cash Return: 2%
  • Airbnb Cash on Cash Return: 6%
  • Price-to-Rent Ratio: 14
  • Airbnb Occupancy Rate: 53%

North Tampa

  • Median Property Price: $164,128
  • Price Per Sq/Ft: $121
  • Traditional Rental Income: $1,053
  • Airbnb Rental Income: $1,981
  • Traditional Cash on Cash Return: 2%
  • Airbnb Cash on Cash Return: 6%
  • Price-to-Rent Ratio: 13
  • Airbnb Occupancy Rate: 54%

Lowry Park Central

  • Median Property Price: $228,440
  • Price Per Sq/Ft: $159
  • Traditional Rental Income: $1,193
  • Airbnb Rental Income: $2,459
  • Traditional Cash on Cash Return: 2%
  • Airbnb Cash on Cash Return: 5%
  • Price-to-Rent Ratio: 16
  • Airbnb Occupancy Rate: 59%

Courier City

  • Median Property Price: $378,693
  • Price Per Sq/Ft: $238
  • Traditional Rental Income: $1,861
  • Airbnb Rental Income: $2,479
  • Traditional Cash on Cash Return: 2%
  • Airbnb Cash on Cash Return: 3%
  • Price-to-Rent Ratio: 17
  • Airbnb Occupancy Rate: 64%

To start looking for and analyzing the best investment properties in your neighborhood of choice, click here.

The Bottom Line

The Tampa real estate market has a winning combination: a strong economy creating new jobs and attracting new residents, builders are constructing new houses, and it’s one of the most affordable housing markets in the US. No wonder Tampa made it on the list of the best places to invest in real estate for 2019!

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