Top Locations Tampa Real Estate Market 2019: Where to Buy Rental Property by Heba Baker July 27, 2019July 25, 2019 by Heba Baker July 27, 2019July 25, 2019 Investing in rental properties is one of the best real estate strategies for the US housing market. However, real estate investors shouldn’t just choose whatever location and hope for the best. Instead, make smart, strategic decisions and only invest in the best places to buy rental property. One such location (which we have analyzed for you) is the Tampa real estate market. Why is it such a strong market for long-term rentals and where can you find top-performing Tampa investment properties? Let’s take a closer look. 5 Reasons to Invest in the Tampa Housing Market 2019 Tampa Bay is the second-largest populated metropolitan in the Florida real estate market. With a local economy worth $130 billion, and a metro area that ranked as one of the 20 fastest-growing markets in the US, the Tampa real estate market is definitely one that property investors want to be in. Let’s get into exactly what it is that makes a Tampa real estate investment in traditional rentals so profitable in 2019. Here are some key Tampa real estate market trends: 1) Strong Job and Population Growth Being consistently recognized as a high growth market, it’s no surprise that Tampa welcomes a new wave of people every year looking to call Tampa home. Over the past two years, the Tampa population has increased by an impressive 4.6 percent. People are moving to Tampa, and it makes sense why. The sunny beaches are not the only thing attractive about this city- its job market is too. STEM, financial services, and healthcare are just a couple of industries experiencing high job growth in Tampa’s local economy. And, with the headquarters of four Fortune 500 companies and a diverse economy, unemployment isn’t an issue for Tampa residents. Especially when you consider the fact that the Tampa metro area contributed about 40,000 new jobs in 2016 which helped boost Florida’s overall economy. 2) Growing Inventory According to Zillow, the Tampa real estate market is currently neutral. Meaning it isn’t really leaning towards either side of the market- both buyers and sellers can score good deals. However, with such rapid growth in population and local economy, Tampa is heating up in the eyes of real estate investors and homebuyers. Still, the construction of new residential property is what’s keeping the market balanced between a seller’s market and a buyer’s market. The PWC’s Emerging Trends in Real Estate 2019 survey ranked the Tampa real estate market second out of 79 cities in regards to homebuilding prospects. So for the foreseeable future, Tampa real estate investors will find a sufficient level of housing inventory. Related: Should I Buy Investment Property in a Buyer’s or Seller’s Market? 3) Increasing Home Values but Affordable Selling Prices Tampa real estate has increased in value by 3.2 percent over the past year and is currently holding a median home value of $218,900. While homes in the Tampa real estate market are appreciating at healthy levels, Tampa houses for sale are still quite affordable. With year-over-year growth of 4.9 percent in the home sale price, property prices are increasing, but relative to the nation, the Tampa real estate market is not expensive. In 2018, the median selling price of Tampa single-family homes was $236,000 (below the national median of $266,900). 4) Strong Rental Market With all this talk about a large population and a strong housing market, real estate investors still need to know how profitable the rental market in any city is before investing. In the Tampa real estate market, over half of the population (53.3%) rents their housing. Combine this wide renter pool with the 2.6 percent year-over-year rent growth, and you’ve got yourself a strong rental market in Tampa. Search for My Investment Property Related: 5 Steps to Conducting an Accurate Rental Market Analysis 5) Stable Citywide Returns Before listing the best places for rental property performance in the Tampa real estate market, we’re going to give you an overview of how long-term rental properties perform in the city. Using data and key calculations from Mashvisor’s investment property calculator, here is how Tampa rentals perform on average: Median Property Price: $739,706 Price per Square Foot: $501 Price to Rent Ratio: 26 Average Days on Market: 51 Monthly Traditional Rental Income: $2,372 Traditional Cash on Cash Return: 1.1% The Tampa real estate market has 177 constituent neighborhoods. Taking the average performance of so many different local markets can skew the actual profitability level of investing in Tampa. For example, the median property price of $739,706 doesn’t mean all Tampa properties for sale are that expensive. And the average return rate of 1 percent doesn’t mean all investments have a low return. Because neighborhoods performing at all different levels are included in the calculations, real estate investors need more of a deep-dive into the Tampa real estate market for optimal investment results. Related: Top 5 Reasons to Invest in Tampa Real Estate Let’s breakdown the Tampa housing market based on rental property performance in different neighborhoods. The 6 Best Neighborhoods in Tampa for Long-Term Rentals Again, using data from Mashvisor’s calculator, we will be listing the top-performing neighborhoods for Tampa investment property in 2019: MacDill AFB Area Median Property Price: $215,000 Price per Square Foot: $141 Price to Rent Ratio: 8 Average Days on Market: 17 Monthly Traditional Rental Income: $2,230 Traditional Cash on Cash Return: 6.8% East Ybor Median Property Price: $126,738 Price per Square Foot: $119 Price to Rent Ratio: 8 Average Days on Market: 55 Monthly Traditional Rental Income: $1,285 Traditional Cash on Cash Return: 6.3% Channel District Median Property Price: $506,773 Price per Square Foot: $303 Price to Rent Ratio: 16 Average Days on Market: 98 Monthly Traditional Rental Income: $2,566 Traditional Cash on Cash Return: 3.4% Northview Hills Median Property Price: $138,726 Price per Square Foot: $110 Price to Rent Ratio: 11 Average Days on Market: 86 Monthly Traditional Rental Income: $1,025 Traditional Cash on Cash Return: 2.9% Rattlesnake Median Property Price: $541,890 Price per Square Foot: $257 Price to Rent Ratio: 12 Average Days on Market: 148 Monthly Traditional Rental Income: $3,861 Traditional Cash on Cash Return: 2.9% Live Oaks Square Median Property Price: $139,481 Price per Square Foot: $98 Price to Rent Ratio: 12 Average Days on Market: 97 Monthly Traditional Rental Income: $1,004 Traditional Cash on Cash Return: 2.8% The Tampa real estate market is full of investment potential and is the ideal location for investing in rental properties. Real estate investors just need to know where to look and which tools to use. Mashvisor’s got you covered in both of those aspects. Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes! Start Your Investment Property Search! START FREE TRIAL NeighborhoodTampa FLTraditional 0 FacebookTwitterGoogle +PinterestLinkedin Heba Baker Heba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post 7 Things You Need to Know About Commercial Real Estate Next Post 11 Best Tips for Successful Real Estate Prospecting Related Posts Top 10 Best Neighborhoods for Buying Airbnb Rentals in Nashville, TN Secondary Market Heats Up As Housing Demand Rises 20 Most Profitable Airbnb Locations in 2020: Cash on Cash Return Best Places to Invest in Real Estate: College Towns Where to Invest in the Tempe Real Estate Market in 2020 Where Are the Best Places to Invest in California in 2022? Buying Memphis Investment Properties in 2020 Is Smart. Here’s Why 5 Best Cities in the South Florida Real Estate Market 3 Best Tips for Texas Real Estate Investors Should I Invest in Airbnb Miami in 2018? 8 Best Cities to Buy Maine Vacation Rentals in 2019 Is Buying a Scottsdale Investment Property a Smart Choice? Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.