Tampa Real Estate Market Overview
Tampa is a major city in the State of Florida. According to the 2018 census data, Tampa has a population of about 393 thousand people. This positions it as the 3rd largest city in Florida, after Miami and Jacksonville. Importantly, the average annual population growth amounts to 2.5%. This means that about 97 thousand new residents join Tampa each year. As a result, the Tampa real estate market keeps expanding to accommodate the new residents and provide housing for them. This is good news for real estate investors considering investing in Tampa rental properties in 2020.
The city is part of the Tampa-St. Petersburg-Clearwater Metropolitan Area, frequently referred to as the Tampa Bay Area. The combined population of the metro area reaches 3.1 million, making it the second largest metropolitan area in the Sunshine State and the fourth most populous one in the Southeastern United States, after Washington, DC, Miami, and Atlanta.
The development of the Tampa real estate market has been supported by a diverse and strong economy. The main economic sectors are many and include finance, insurance, real estate, healthcare, air and sea shipping, and professional sports. The city is home to the regional offices of a number of major corporations including banks and telecom companies. The headquarters of a few Fortune 1000 companies are positioned in Tampa. This is an important factor for the prosperity of the Tampa commercial real estate market as well as the Tampa housing market due to the availability of hundreds of thousands of highly paid employees.
Another circumstance which Florida real estate market investors should take into consideration is the major role which tourism plays in the Tampa economy. That’s owing to the high concentration of tourist attractions. Some of the most popular places for tourists include the theme parks in and near Tampa: Busch Gardens Tampa Bay, Dinosaur World, Legoland Florida Resort, and Adventure Island, attracting millions of children and adult visitors every year. The Big Guava boasts other entertainment options as well such as the Florida Aquarium, TampaZoo at Lowry Park, Tampa Riverwalk, ZooQuarium, and others. Moreover, Tampa’s visitors can enjoy the leisure opportunities in Orlando and Clearwater, located within a reasonable driving distance. As a result of the status of a major tourism center, Tampa welcomes more than 22.5 million tourists per year, and this number is constantly growing. This shows the increasingly large role which tourism plays in the local economy in terms of both revenue and job creation, in line with the overall trends in Florida. As you can imagine, this turns Airbnb Tampa into a profitable real estate investing strategy in the local market.
The employment growth in Tampa has been forecast at 43% in the next 10 years, well above the expected US job creation of 34%. Consequently, the Tampa real estate market will continue attracting newcomers which will lead to the expansion and development of the local housing market.
As the rest of this Tampa real estate market report 2020 will demonstrate, this is currently one of the best places to invest in real estate, regardless of your preferred rental strategy. Moreover, this real estate trend is expected to continue in the coming years.
Overview of the Tampa Real Estate Market 2020
- Median Property Price: $412,800
- Price per Square Foot: $205
- Real Estate Appreciation: 139% between Q1 2000 and Q3 2019 (above the Florida real estate appreciation rate and significantly more than the national average natural appreciation rate)
- Days on Market: 83
- Listings for Sale: 1,423
- Price to Rent Ratio: 21 (high)
- Buyer’s Market or Seller’s Market: A hot seller’s market
- Renters’ Percent of Population: 53%
This section of our Tampa real estate market 2020 report will provide aspiring residential real estate investors with a general rundown of the state of the housing market in The Big Guava. One of the first factors which beginner investors consider is the prevailing home value level to know if they can afford buying an investment property in this market. According to Tampa real estate data from Mashvisor, the median property price equals $412,800. This ranks the average Tampa real estate prices at about 70% above the national median home value of $243,200, as calculated by Zillow. For comparison to the rest of the Florida real estate market, Tampa home values are below the rates in the Miami real estate market but above the rates in the Orlando real estate market. Furthermore, while a median property price of $412,800 may sound high to new real estate investors who face limited financing options, Tampa investment properties are significantly cheaper than those in other top locations for real estate investments such as New York, San Francisco, Boston, Los Angeles, San Diego, and others.
Generally speaking, the Tampa real estate market is very hot at the moment, and it will remain a seller’s market throughout 2020. One of the most important indicators in this regard is the rising property prices. In the last 20 years, natural appreciation has amounted to 139%. In the past 12 months, home values increased by 3.8%, while real estate appreciation in Tampa is forecast to slow down a bit to 2.2% in the next 12 months. However, this is still a strong growth. Another major criterion is the relatively low days on market and the lean inventory of Tampa real estate listings compared to the size of the Tampa housing market.
The heavy demand from residential real estate investors will further be supported by the high proportion of renters in Tampa. More than half of the population – 53% to be precise – rent instead of own a home. The robust demand by renters vs. homeowners is driven by the high price to rent ratio. Mashvisor’s real estate market data for Tampa shows that the price to rent ratio in the Tampa housing market will amount to 21 in 2020. A price to rent ratio of 20 and above indicates that the predominant rental rates are less expensive than the dominating property prices, so renting makes more financial sense than buying a home.
Furthermore, the annual PwC Emerging Trends in Real Estate: United States and Canada 2020 report ranks the Tampa-St. Petersburg real estate market at position #11 among the 80 surveyed markets for the upcoming year. According to the Tampa real estate experts who were interviewed for the report, the quality of life and the talent pool constitute the key positive factors. Some negative influences, however, encompass the existing challenges in physical and soft infrastructure including education, marketing, and regional collaboration. Despite these obstacles, being ranked as number 11 by such a prestigious publication is definitely a very optimistic indication.
Altogether, the Tampa real estate market 2020 is expected to retain its ranking as one of the leading locations for real estate investing in the US housing market. As you will see later in this Tampa real estate market report for 2020, both traditional Tampa rental properties and Tampa vacation rentals will yield a high return on investment in comparison with other best places to invest in real estate.
Tampa Real Estate Market: Best Property Types for Investing in Rental Properties
- Single Family Homes for Sale in Tampa, FL: 966 Tampa real estate listings
- Median Property Price: $409,500
- Price per Square Foot: $196
- Average Monthly Traditional Rental Income: $1,610
- Average Traditional Cash on Cash Return: 1.5%
- Average Monthly Airbnb Rental Income: $2,740
- Average Airbnb Cash on Cash Return: 3.6%
- Condos for Sale in Tampa, FL: 223 Tampa real estate listings
- Median Property Price: $502,300
- Price per Square Foot: $279
- Average Monthly Traditional Rental Income: $1,760
- Average Traditional Cash on Cash Return: 0.3%
- Average Monthly Airbnb Rental Income: $2,060
- Average Airbnb Cash on Cash Return: 0.6%
- Townhouses for Sale in Tampa, FL: 172 Tampa real estate listings
- Median Property Price: $342,300
- Price per Square Foot: $174
- Average Monthly Traditional Rental Income: $1,780
- Average Traditional Cash on Cash Return: 1.0%
- Average Monthly Airbnb Rental Income: $2,550
- Average Airbnb Cash on Cash Return: 2.5%
- Multi Family Homes for Sale in Tampa, FL: 30 Tampa real estate listings
- Median Property Price: $374,900
- Price per Square Foot: $165
- Average Monthly Traditional Rental Income: N/A
- Average Traditional Cash on Cash Return: N/A
- Average Monthly Airbnb Rental Income: N/A
- Average Airbnb Cash on Cash Return: N/A
- Foreclosed Homes for Sale in Tampa, FL: 26 Tampa real estate listings
- Median Property Price: $230,400
- Price per Square Foot: $145
- Average Monthly Traditional Rental Income: $1,380
- Average Traditional Cash on Cash Return: 2.8%
- Average Monthly Airbnb Rental Income: $2,350
- Average Airbnb Cash on Cash Return: 5.2%
Why You Should Invest in Single Family Homes for Sale in Tampa, Florida
More than two thirds of all Tampa houses for sale are comprised of single family homes. This makes The Big Guava similar to other top locations for buying rental properties in the US as the majority of these markets are dominated by this property type. In addition, the median property price of single family homes for sale in Tampa is just below the city average, while the rate of return on a rental property is higher than the Tampa average for both rental strategies: long term Tampa rental properties and Airbnb Tampa investments. Actually, this property type offers the highest return on investment in the Tampa real estate market. In addition, single family homes are ideal for beginner real estate investors as they attract responsible, good tenants who pay rent on time and take excellent care of the rental. As Tampa short term rentals, single family homes also provide investors with a variety of options such as renting out the entire property to one group of Airbnb hosts, renting out each room separately, or even house hacking. If you are thinking of buying a Tampa investment property in 2020, give single family homes a serious consideration.
Why You Should Invest in Condos for Sale in Tampa, Florida
The second most numerous type of homes for sale in Tampa, FL is condos with a total share of about 16% of all Tampa real estate listings at the moment. However, investors interested in condominiums for sale in the Tampa real estate market will have to be prepared to pay about 22% more. Moreover, when doing their Tampa investment property analysis, they need to factor in the monthly homeowners’ association fees into the recurring monthly rental expenses. On top of that, before buying a condo to invest in, you should make sure that the HOA allows renting out, especially if Airbnb is your preferred real estate investing strategy. Many condo HOAs have certain rules and restrictions, and real estate investors need to familiarize themselves with them before making a move. With regards to cash on cash return, condos for sale in Tampa make less money than single family homes and townhouses.
Why You Should Invest in Townhouses for Sale in Tampa, Florida
Townhouses for sale in Tampa get listed for 17% less than other investment properties. That’s why some new real estate investors find these cheapest properties so attractive as financing is less of an issue with lower property prices. Because of the below-average home values, townhouses offer a higher rate of return than condos and emerge as the second most profitable property type in the Tampa real estate market. Investors have as many as 172 townhouses for sale in Tampa, Florida to choose a positive cash flow property with a high rental income and great return on investment. All that they need is the best real estate investment tools for 2020 such as a Property Finder and a rental property calculator.
To gain immediate access to all real estate investing tools you’ll need in 2020, sign up for Mashvisor.
Why You Should Invest in Multi Family Homes for Sale in Tampa, Florida
Those investors who are interested in growing and diversifying their rental property investment portfolios in an instant should have a look at multi family homes for sale in Tampa, FL. While supplying multiple rental units within the same building, they sell for 9% less than the median Tampa real estate property listed at the moment. Rental property management is also easier with multi family home investing. The concentration of rental properties within the same building makes a huge difference for DYI landlords and Tampa Airbnb hosts as they save time and money from traveling to various locations. Hiring a professional property management company is also a good real estate investing strategy with multi family homes. Although Mashvisor’s Tampa real estate market data does not provide estimates of the traditional and Airbnb rental income and cash on cash return associated with multi family homes for sale, having access to a Property Finder and a rental property calculator will help investors find the most lucrative opportunities.
Why You Should Invest in Foreclosures for Sale in Tampa, Florida
Last but not least, regardless of which property type you decide to go for, don’t forget to check out foreclosed homes for sale in Tampa, FL. Currently foreclosures in Tampa rare 44% less pricey than MLS listings, which is a stark differentiation for any real estate investor, no matter his/her budget, financing options, and status. Because of the affordable property prices, foreclosure homes naturally offer a much higher return on investment in terms of both CoC return and capitalization rate than other real estate listings. If you are searching for a good cash on cash return and a good cap rate in the Tampa real estate market, keep an eye on foreclosed homes for sale.
Important Statistics for Tampa Real Estate Investors
Safety
- Crime Rate Index: 25 (100 is safest)
The Tampa real estate market is safer than 25% of US cities, which makes it one of the safest major cities. The Big Guava boasts an adequately low crime rate of 22 crimes per 1,000 residents.
Access
- Walk Score: 85
- Transit Score: 68
- Bike Score: 71
Tampa is a very walkable city where the bulk of errands can be accomplished on foot. Moreover, it scores well in terms of transit due to the myriad public transportation options. For those who prefer a physically active lifestyle, biking is a convenient option for most trips within the Tampa housing market.
Affordability
- Cost of Living Index Excluding Rent: 70
- Rent Index: 39
- Cost of Living Index Including Rent: 55
Affordability will not be a major challenge for the residents of the Tampa real estate market 2020. The cost of living in Tampa without rent reaches 70% of the one in New York City. meanwhile, rent is 61% cheaper in Tampa than in NYC. The comprehensive cost of living index including rent is 55% of the New York level. This is yet another constructive criterion giving real estate investors the confidence they need to for buying rental properties in Tampa in 2020. Tenants will not feel strained by rent and will be able to pay it on time as it will not constitute a major fragment of their budget. That’s one of the reasons why so many people prefer to rent, pushing up demand in the Tampa rental market.
Property Tax Rates
- Average Effective Property Tax Rate in Tampa: 1.177%
- Average Effective Property Tax Rate in Hillsborough County: 1.22%
- Average Effective Property Tax Rate in Florida: 0.98% (below the national average real estate tax rate of 1.08%)
Generally speaking, property taxes in Tampa, Florida are not an issue of concern for real estate investors. The effective property tax rate in the Tampa housing market reaches 1.177%. Even though this exceeds the nationwide rate, it is much below what other markets collect. Besides, attributable to the reasonable home values, the overall amount of Tampa real estate taxes is not a dealbreaker for investors. Nonetheless, when deciding which investment property to buy, the need to include the property tax in the rental property analysis to ensure investing in one of the top-performing income properties in Tampa.
It is worth mentioning that the Florida real estate market has comparatively low property taxes which is beneficial for real estate investors. But if you’d like to search for investment properties in some locations with even lower real estate taxes or even states with no property tax, you should have a look at Alabama, Hawaii, Louisiana, Texas, West Virginia, and Wyoming.
Buying Traditional Rental Properties in the Tampa Real Estate Market 2020
- Average Traditional Rental Income: $1,650
- Average Traditional Cash on Cash Return: 1.2%
- Price to Rent Ratio: 21
- Renters’ Percent of Population: 53%
- Optimal Property Type: Single family home and townhouse
- Optimal Number of Bedrooms: 3 and 2
- Traditional Rental Listings: 3,372
If you are looking for a profitable location to buy a rental property to lease traditionally in 2020, you should consider Tampa real estate investments. The average monthly traditional rental income in this Florida city of $1,650 may not seem like a lot. However, when applied to the satisfactorily affordable property prices, it leads to a very good return on investment for long term rentals. The city-wide average cash on cash return for Tampa rental properties of 1.2% is notably under the recommended good cash on cash return of 8% and above. At the same time, this value is just an average rate, while the best neighborhoods in Tampa for real estate investing offer a much higher rate of return on a rental property. With the help of a Property Finder real estate investment tool, you can find investment properties for sale which bring a double-digit cap rate and CoC return in the Tampa real estate market 2020.
The principal reason for the profit-making nature of traditional Tampa rental properties is the strong rental demand in the city. First and foremost, as many as 53% of the local population rents rather than owns a home. That’s because of the young population including many millennials who are attracted to the well-paying job opportunities. Another factor is the high price to rent ratio of 21, according to Tampa real estate data provided by Mashvisor. From regular people’s point of view, such a price to rent ratio indicates that the more sound financial decision is to rent. This is great news for aspiring long term rental property investors in search of one of the top locations for this rental strategy in 2020. What should encourage real estate investors to choose the Tampa real estate market all the more is the fact that the number of residents is expected to continue increasing in 2020 and beyond as more and more people enter the job market in The Big Guava.
As you will see in the subsequent section of our Tampa real estate market report for 2020, the legality surrounding traditional rental properties in Tampa is yet another factor which favors real estate investments in The Big Guava.
Before you start your own Tampa real estate market analysis and property search, you should know that single family homes and townhouses for sale in Tampa make for the most profitable property types. The optimal number of bedrooms in traditional rental property to make money in real estate is 3 and 2. With 1,423 homes for sale in Tampa, FL, savvy real estate investors are guaranteed to find a top-performing income property within their budget. The key to success is to make use of the best real estate investment tools for 2020.
Landlord-Tenant Law and Regulations in the Tampa Real Estate Market
Tampa is located in the Florida real estate market, which is one of the most landlord-friendly states in the entire US housing market. Other such states include Arizona, Texas, Indiana, Colorado, Georgia, Kentucky, and Alabama. What makes buying a house in Florida to rent out relatively unproblematic for landlords is the fact that the Florida landlord-tenant laws are not very detailed and demanding.
In addition to the Florida real estate laws, investors in traditional rental properties in the Tampa housing market should also abide by certain rules and regulations specific to Hillsborough County and the City of Tampa. By law, lease agreements for long term Tampa rental properties can be either oral or written. Landlords are strongly encouraged to sign written rental agreements with their tenants regardless of the tenancy duration in which all rights and obligations of both parties are clearly stated. Needless to say, written lease agreements are easier to follow and more obliging.
In the Tampa real estate market 2020 landlords will continue being allowed to charge security deposits which they can hold in a non-interest bearing account, keep in an interest-bearing account (and pay specified interest to the renter), or post a surety bond. In case of no reason to withhold a part of the security deposit, the landlord has to return it to the tenant no later than 15 days after the latter vacates the rental. If the real estate investor needs to impose a claim, he/she has to provide renters with a written notice of how much will be deducted and why within 30 days.
Additionally, owners of traditional Tampa investment properties are allowed to enter the premises after giving the tenant a reasonable notice and at a reasonable time for the purpose of implementing required fixes and repairs.
If you are thinking of buying a Tampa rental property in 2020, you should know that your rights will be protected in case of late rent. Real estate investors can serve their renters a written notice to pay rent within a three-day period (excluding weekends and major holidays) to pay rent or vacate the rental unit. If the tenant fails to do that, the landlord can take legal actions to start an eviction.
Florida landlords in general and Tampa ones in specific have some other specific obligations depending on the rental property type: a single family home,a duplex, an apartment, or another kind. Make sure to check out the regulations which comply with the property type which you buy as an investment property in Tampa in 2020.
All in all, becoming a landlord in the Tampa real estate market faces no legal obstacles. Combined with the high rental demand, the excellent traditional rental income, and the great return on investment in terms of both traditional cash on cash return and traditional cap rate, this reality makes The Big Guava one of the best places to invest in real estate in 2020.
Best Neighborhoods in Tampa for Investing in Long Term Rental Properties
Mashvisor’s Tampa real estate market analysis ranks the following areas as the top Tampa neighborhoods for buying a traditional rental property:
- Median Property Price: $629,000
- Price per Square Foot: $233
- Average Traditional Rental Income: $4,320
- Average Traditional Cash on Cash Return: 4.5%
- Real Estate Listings for Sale: 1
- Days on Market: 170
- Traditional Listings: 5
- Walk Score: 50
- Median Property Price: $227,500
- Price per Square Foot: $209
- Average Traditional Rental Income: $1,660
- Average Traditional Cash on Cash Return: 4.1%
- Real Estate Listings for Sale: 4
- Days on Market: 74
- Traditional Listings: 19
- Walk Score: 61
- Median Property Price: $153,700
- Price per Square Foot: $125
- Average Traditional Rental Income: $1,130
- Average Traditional Cash on Cash Return: 3.6%
- Real Estate Listings for Sale: 9
- Days on Market: 58
- Traditional Listings: 9
- Walk Score: 61
4. Ybor City
- Median Property Price: $268,800
- Price per Square Foot: $154
- Average Traditional Rental Income: $1,190
- Average Traditional Cash on Cash Return: 2.6%
- Real Estate Listings for Sale: 22
- Days on Market: 70
- Traditional Listings: 22
- Walk Score: 67
5. Temple Crest
- Median Property Price: $235,400
- Price per Square Foot: $138
- Average Traditional Rental Income: $1,120
- Average Traditional Cash on Cash Return: 2.5%
- Real Estate Listings for Sale: 22
- Days on Market: 67
- Traditional Listings: 33
- Walk Score: 34
- Median Property Price: $171,700
- Price per Square Foot: $127
- Average Traditional Rental Income: $1,200
- Average Traditional Cash on Cash Return: 2.4%
- Real Estate Listings for Sale: 13
- Days on Market: 56
- Traditional Listings: 10
- Walk Score: 63
To find a profitable traditional rental property in these neighborhoods or any others in the Tampa real estate market, sign up for Mashvisor today.
Buying Airbnb Rental Properties in the Tampa Real Estate Market 2020
- Average Airbnb Rental Income: $2,600
- Average Airbnb Cash on Cash Return: 2.9%
- Average Airbnb Occupancy Rate: 52.3%
- Optimal Property Type: Single family home and townhouse
- Optimal Number of Bedrooms: 4 and 3
- Airbnb Rental Listings: 3.459
- Airbnb Tampa Legal Status: Legal for all property types, for both owner-occupied and non-owner occupied Tampa short term rentals. Certain taxes have to be paid.
- Annual Events in the Tampa Housing Market with the Best Airbnb Occupancy Rate:
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- Gasparilla Pirate Fest: late January or early February
Since the start of the 20th century, hundreds of pirates dressed in colorful costumes bring their decorated boats to Tampa to celebrate the mythical pirate Jasper Gaspar. The festival hosts a number of fun events for children and adults including a parade, competitions, and other festivities. The Gasparilla Pirate Fest brings together over 500,000 spectators.
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- Gasparilla Festival of the Arts: end of February-beginning of March
Since 1970 the Raymond James Gasparilla Festival of the Arts has been attracting more than 250,000 visitors annually who come to enjoy the pottery, photography, glass, paintings, digital mediums, wood, mixed media, water colors, and other forms of art. This art even in the Curtis Hixon Waterfront Park gathers some of the some of the most prominent artists from around the globe.
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- Gasparilla Music Festival: beginning of March
In the past decade the Gasparilla Music Festival in Downtown Tampa has turned into one of the most significant and popular musical events. The two-day even features over 40 acts on 5 stages along the waterfront.
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- Gasparilla International Film Festival: March
Established in 2006, the Gasparilla International Film features numerous filmmakers, producers, and other professionals from around the world each and every year.
If you are interested in becoming an Airbnb host in 2020, then the Tampa, Florida real estate market is one of the best spots in all of the US. First and foremost, unlike other popular tourist locations such as Las Vegas, New York, Los Angeles, Miami, San Francisco, Boston, San Diego, and more, Airbnb Tampa will remain entirely legal and unrestricted in 2020. The decision of the local authorities to keep Tampa short term rentals unobstructed is in harmony with Florida’s overall stance in favor of vacation rentals. As a result, in 2018 Airbnb hosts in the Tampa Bay Area generated $113 million in Airbnb revenue, accounting for about 14% of Florida’s total Airbnb income.
This success of the Tampa Airbnb industry has been provoked mainly by the status of the city as one of the hottest tourist destinations across the US. Demand for Tampa vacation rentals is high, resulting in an outstanding Airbnb occupancy rate of 52.3%. The rental income which Airbnb investment properties can generate in the Tampa real estate market exceeds the monthly rent of traditional investment properties. This leads to a higher return on investment as well.
If you are planning to buy an Airbnb Tampa rental property in 2020, keep in mind that single family homes and townhouses will bring you the highest cash on cash return and cap rate, on average. Nonetheless, you need to conduct detailed property search and diligent investment property analysis to assure positive cash flow and high return. Bigger Tampa short term rentals bring more profitability – real estate properties with 4 and 3 bedrooms, in that order, produce the most return.
Airbnb Tampa Laws and Regulations
The exciting news for all aspiring Tampa Airbnb hosts is that investing in vacation rentals in the Tampa real estate market will be fully legal and problemless from a legal point of view in 2020. First of all, short term rentals have been completely legalized within the Florida real estate market. Moreover, Florida real estate laws prohibit counties and cities from preventing Airbnb rental properties on the territory under their jurisdiction. Hillsborough County and Tampa do not exhibit their own short term rental regulations, which means that Tampa vacation rentals are regulated and governed by the Florida rules.
As stated by the Florida Department of Business and Professional Regulation (DBPR), Florida vacation rentals – and thus Tampa vacation rentals – constitute units or groups of units in a condo or a cooperative as well as collectively or individually owned single family homes, two family houses, four family properties, or dwellings which operate as transient public lodging establishments but do not comprise timeshare projects. Such Tampa vacation rentals have to register with the DBPR in order to pay various Tourism Development Taxes. Meanwhile, renting out a room or rooms in your permanent home which do not comprise an entire real estate property on Airbnb or other home sharing platforms is exempted from paying taxes of up to $50,000.
The Airbnb platform has an agreement with Hillsborough County, where the Tampa real estate market is located, according to which the short term rental platform collects taxes from Tampa vacation rentals booked there and remits them to the city. For Tampa short term rentals listed on other platforms, the host has to pay taxes on his/her own.
Altogether, non-owner occupied Tampa vacation rentals pay three types of taxes:
- Florida Transient Rental Tax of 6%
- Florida Discretionary Sales Surtax of 1%
- Hillsborough County Tourist Development Tax of 5%
Even these tax rates in the Tampa, FL real estate market are low compared to what other best locations for buying Airbnb investment properties charge hosts. This is one more reason why investing in an Airbnb Tampa property is one of the best real estate investing strategies you can implement in 2020.
Best Neighborhoods in Tampa for Investing in Short Term Rental Properties
Mashvisor’s Tampa real estate market data reveals that these are the most profitable locations for buying an Airbnb investment property in 2020:
- Median Property Price: $203,500
- Price per Square Foot: $169
- Average Airbnb Rental Income: $2,840
- Average Airbnb Cash on Cash Return: 7.4%
- Average Airbnb Occupancy Rate: 61.1%
- Real Estate Listings for Sale: 4
- Days on Market: 57
- Airbnb Listings: 18
- Walk Score: 27
2. Terrace Park
- Median Property Price: $158,900
- Price per Square Foot: $124
- Average Airbnb Rental Income: $2,790
- Average Airbnb Cash on Cash Return: 7.4%
- Average Airbnb Occupancy Rate: 58.7%
- Real Estate Listings for Sale: 12
- Days on Market: 34
- Airbnb Listings: 10
- Walk Score: 21
- Median Property Price: $187,100
- Price per Square Foot: $122
- Average Airbnb Rental Income: $1,950
- Average Airbnb Cash on Cash Return: 6.6%
- Average Airbnb Occupancy Rate: 57.2%
- Real Estate Listings for Sale: 4
- Days on Market: 69
- Airbnb Listings: 5
- Walk Score: 49
4. Interbay
- Median Property Price: $377,500
- Price per Square Foot: $208
- Average Airbnb Rental Income: $3,360
- Average Airbnb Cash on Cash Return: 6.5%
- Average Airbnb Occupancy Rate: 54.7%
- Real Estate Listings for Sale: 17
- Days on Market: 125
- Airbnb Listings: 12
- Walk Score: 44
5. North Tampa
- Median Property Price: $168,700
- Price per Square Foot: $135
- Average Airbnb Rental Income: $2,060
- Average Airbnb Cash on Cash Return: 6.1%
- Average Airbnb Occupancy Rate: 49.5%
- Real Estate Listings for Sale: 18
- Days on Market: 64
- Airbnb Listings: 16
- Walk Score: 67
- Median Property Price: $151,400
- Price per Square Foot: $123
- Average Airbnb Rental Income: $1,850
- Average Airbnb Cash on Cash Return: 5.5%
- Average Airbnb Occupancy Rate: 51.7%
- Real Estate Listings for Sale: 30
- Days on Market: 65
- Airbnb Listings: 54
- Walk Score: 5
To start looking for the best Airbnb investment properties for sale in the Tampa real estate market in 2020, sign up for Mashvisor now.
Optimal Rental Strategy for Investing in the Tampa Real Estate Market 2020
One of the chief benefits of buying an investment property in the Tampa housing market is that both rental strategies are forecast to bring a high return on investment in 2020 – whether you look at the cash on cash return or the cap rate. Besides, landlords are generally favored in the existing local and state real estate laws pertaining to traditional Tampa rental properties, while Airbnb Tampa is fully legal and not restricted by any means.
In spite of this, Tampa short term rentals emerge as the better real estate investment strategy for 2020 assignable to the higher rental income and ultimately return on investment which they offer. Eventually, that’s the decisive element in the choice of real estate investors whose goal is to make as much money as possible from their property investments.
Still, if this is your first time investing in real estate, and you are uncertain whether being an Airbnb host in the Tampa real estate market is the best decision for your particular case, you can proceed with confidence. Traditional Tampa investment properties have the potential to generate a high rate of return if they are purchased after careful, in-depth rental property analysis with the help of an investment property calculator. So, if a few months or years after buying an Airbnb property in Tampa, you realize this is the wrong strategy for you, you can easily switch to investing in a traditional rental. Even if you are an out of state real estate investor, you don’t have to worry about the active nature of Airbnb rentals. You can always hire a professional property manager to handle all aspects of renting out on Airbnb or other short term rental platforms.
Advantages of Investing in the Tampa Real Estate Market
As already established in this Tampa real estate market report 2020, The Big Guava is one of the best places to buy a rental property in the US housing market in the coming year. The reasons are many. One of the first indicators which beginner real estate investors look at is the dominant property prices. Homes for sale in Tampa, FL get listed for 70% above the national median home value, but even this real estate price remains much below what other best real estate markets for investing in rental properties offer. Investing in cheap real estate is not only more affordable but also constitutes one of the easier methods to push up the successfulness of your rental business immediately.
The demand for both traditional Tampa rental properties and Tampa short term rentals is the second most sizeable advantage of buying an investment property in the Tampa housing market in 2020. The ongoing migration into the city in search of well-paying job opportunities supports the advancement of the traditional rental market. Meanwhile, Tampa’s position as a major tourist and business hub reinforces the growth in the Tampa Airbnb rental industry.
The two real estate investing variations provide above-average return on investment. Mashvisor’s US real estate market analysis highlights the fact that Tampa is one of the best places for buying a rental property in 2020, offering a rate of return exceeding the national average. As long as you get access to the must-have real estate investment tools for 2020, you can rest assured that you can find a profitable traditional or Airbnb investment property in the Tampa real estate market within minutes.
The Florida real estate laws are also supportive of property investors, no matter the selected rental strategy. Florida constitutes not only one of the most landlord-friendly states but also one of the few markets which have not hampered investing in vacation rentals in any manner. The expected Tampa real estate market trends for 2020 are that Tampa short term rentals will remain entirely legal, albeit having to pay some minimal taxes.
Disadvantages of Investing in the Tampa Real Estate Market
Investing in income properties in Tampa is as close to perfect as it can possibly get. The only drawback which newcomers to the world of real estate investing need to keep in mind is the property prices. It is true that the listing prices of houses for sale in Tampa are significantly smaller than prices in major US cities. Nonetheless, they are 70% higher than the median home value in the US housing market. This means that investors with limited budgets might face challenges when financing the purchase of an investment property in the Tampa real estate market. They need to consider various options available to real estate investors such as conventional mortgage, private money lenders, and hard money loans.
If, alternatively, you would like to take a look at some of the cheapest housing markets in 2020, these include Pittsburg, Detroit, Fort Wayne, Fayetteville, and Cleveland.
Tampa Real Estate Market Forecast 2020
The Big Guava is not only one of the best locations for investing in real estate 2019, but it is also foreseen to retain this stance in 2020. Mashvisor’s Tampa real estate market analysis as well as the forecasts of Florida real estate experts all point out in this favorable direction. Stable real estate market growth is one of the predominant and most significant trends. The prices of Tampa homes for sale will continue to rise at a reasonable rate. Without causing panic among real estate investors, homebuyers, and other property buyers, natural appreciation will stabilize, contributing to solid long term return on investment.
Another of the leading Tampa real estate market conditions will be the expanding rental market, for both types of income properties. More and more people are expected to come to the Tampa housing market, whether as permanent residents or short time visitors. The steadily growing economy and the endless tourist attractions drive demand for traditional Tampa investment properties and Airbnb Tampa.
Last but not least, no Tampa real estate market report can skip highlighting the fact that short term rentals are predicted to remain permitted by law and unblocked not only in 2020 but also afterwards. The stand of the Florida real estate authorities to legalize vacation rentals in all cities and other locations has been one of the most important contributions for the spread and and prosperity of Tampa short term rentals.
Tools and Resources for Profitable Investments in the Tampa Real Estate Market 2020
Real Estate Investment Tools for Buying Income Properties in Tampa
Even the most seasoned real estate investor can gain competitive advantage by getting access to AI real estate analytics software in 2020. The color-coded map provided by Mashvisor’s heatmap gives investors a quick glance at the best Tampa neighborhoods for investing in rental properties as well as the worst areas for that purpose. Investors can conduct neighborhood analysis by listing price, traditional rental income, Airbnb rental income, traditional cash on cash return, Airbnb cash on cash return, and Airbnb occupancy rate.
The next obligatory real estate investing tool is the investment property calculator which analyzes all neighborhoods in the Tampa real estate market. The neighborhood analysis pages on Mashvisor’s platform show investors numerous indicators and factors including but not limited to the median property price, the average traditional and Airbnb rental income, the traditional and average cash on cash return, the average Airbnb occupancy rate, the optimal rental strategy, real estate comps, traditional rental comps, and Airbnb rental comps.
After focusing on a particular Tampa neighborhood, real estate investors can use the Property Finder tool to locate the top-performing rentals in the Tampa housing market in 2020 based on their budget, preferred rental strategy, and optimal property type and size.
Last but not least, the rental property calculator allows even new real estate investors to conduct detailed investment property analysis of any property listed for sale on the Mashvisor property including MLS listings, foreclosures, bank-owned homes, and short sales. In addition, users can import their own off market property as long as they know the address. The rental property analysis will comprise of all numbers and figures that you need to make profitable real estate investing decisions. The rental expenses, the rental income, the cash flow, the occupancy rate, and the return on investment are all revealed in a matter of seconds for any property in the Tampa real estate market.
To start searching for and analyzing top-performing rental properties in the Tampa real estate market, sign up for Mashvisor now.
Best Real Estate Agents in Tampa, FL
Buying an investment property by hiring a real estate agent gives additional power to any investor. Agents and brokers are real estate professionals who can find good deals and negotiate the best prices. Working with one of the top Tampa real estate agents is particularly beneficial for first-time investors, part-time investors, and out of state investors. To hire one of the top-performing real estate agents in Tampa, Florida, here are some of the most popular ones on Mashvisor’s agent directory:
- Tampa Real Estate Agent Amy Moline
- Tampa Real Estate Agent Christopher Nelson
- Tampa Real Estate Agent Darla Wright
- Tampa Real Estate Agent Laura Ferguson
- Tampa Real Estate Agent Otniel Gil
Buying a Tampa Investment Property on a House Auction
As mentioned previously in our Tampa real estate market report 2020, one of the most straight-forward ways to maximize the return on investment on our rental property instantly is to buy cheap real estate. If that’s one of your goals as an investor in the Tampa housing market, you should definitely check out available foreclosed homes for sale in Tampa, Florida. To do that, keep an eye on the calendar of real estate auctions.
Traditional Tampa Rental Property Management
Don’t make the same mistake that many others make – namely, staying away from long term rental investments because of assuming that this turns you into a landlord. It’s true that not everyone was born to be a landlord, and that’s hiring a professional property manager has become such a popular option in the US housing market. If you want to invest in the Tampa real estate market without feeling the pressure of the landlord job, that’s absolutely feasible.
Airbnb Tampa Rental Property Management
The same holds true for investing in Tampa short term rentals. Being an Airbnb host is even more demanding and challenging than being a landlord. You have to be available to clean your Airbnb property and restock it on a daily basis. Moreover, you have to set up flexible pricing to assure maximum Airbnb occupancy rate and to make the most Airbnb income. Not to mention responding to Airbnb host questions, handling negative reviews, and many others. An alternative is to hire a short term rental property management company and turn your Airbnb Tampa investment property into a source of passive rental income.
Real Estate Blogs for Investors in the Tampa Housing Market
If you need some further assistance before feeling fully ready to buy an investment property in the Tampa real estate market in 2020, you can read some articles on our real estate blog:
With housing inventory down but home sales up across the state’s housing market as a whole, how is the real estate market