Out of the large number of growing housing markets in Florida stands the Tampa housing market. It’s showing significant growth compared to last year’s data. That goes for both the median home value and the total number of acquired properties.
For the real estate investor who is interested in this Florida real estate haven, now is the time to invest in the Tampa housing market. According to Mashvisor’s investment property calculator, the median home price in Tampa is $368,521. Besides the fact that the market is growing at a high rate, it remains an affordable housing market compared to others across the country. Therefore, many real estate investors are cashing in on that. So, if you’re a real estate investor wondering where to fortify your hard-earned cash in the Tampa housing market, make sure to study the market and do your due diligence before committing.
Why should you invest in the Tampa housing market?
Fast growing area
While it’s not fair to compare Tampa to NYC, the city is becoming more and more of a metropolitan area. With a lively downtown packed with tourist attractions and restaurants of all kinds, you can see it walking down Kennedy Boulevard. Therefore, it makes perfect sense for real estate investors to invest in real estate in this growing city.
Appreciating home values
Compared to other real estate markets in 2018 within the US housing market, the Tampa housing market is a major player in the league. Real estate appreciation is a major benefit that real estate investors can make use of here. Most successful real estate investors are jumping on this opportunity to buy-and-hold properties until they hit a price point and then voila!
Related: Cash Flow vs. Appreciation: What Should Drive Your Real Estate Investment Decision?
Constant job growth
Job growth in the area is noticeable. With more businesses opening and more workforce needed, this helps the Tampa real estate market become what it can be. This works for both commercial investment properties and residential real estate as well. Not to mention that all the jobs created need people to fill them and ultimately this workforce will need a place to stay. The answer to that is clearly rental properties.
City attractions
For a real estate investor, city attractions can make or break your real estate business, especially if you were running a real estate investment business that focuses on short-term rental properties and Airbnb rentals. With Tampa, you have nothing to worry about! Additionally, the city spreads across a number of parks, museums, and restaurants. All these factors contribute to gaining a momentum of tourist influx into the city. Most importantly, these tourists lead to a demand for short-term rental properties and vacation home rentals. For the real estate investors out there, this is your opportunity to get started in real estate investing.
Quality of life and weather
Along with the constant job growth that’s currently taking place in Tampa, it remains an affordable place when it comes to the cost of living. Therefore, many US families, especially young families, are taking advantage of the weather and the affordable living expenses and are moving to Tampa. Accordingly, as a real estate investor, this is among the very top reasons of why you should invest in rental properties in the Tampa housing market- all these migrants will need a place to stay! If you’re looking for other locations to invest in rental properties, read this blog post: The 7 Best Cities to Invest in Rental Properties in 2018.
How to ensure profitability with your real estate investment
Whether you’re investing in Florida real estate or any other state, a must have real estate investment tool that most successful real estate investors use to ensure they’re making money in real estate is an investment property calculator.
For more information on using an investment property calculator, read this: Why an Investment Property Calculator Is Better Than Spreadsheets.
With an investment property calculator, the real estate investor can find out any real estate related measurements of the potential investment property. All that with just a few simple clicks. Consider using Mashvisor’s investment property calculator for the best possible experience. You can use it to find out the capitalization rate, cash on cash return, and even Airbnb occupancy rates. Sign up for Mashvisor and make use of the 14-day free trial we offer by clicking here.
What are the best neighborhoods in the Tampa housing market?
Harbor Island
This neighborhood is located centrally near the downtown area, and close to the water and beautiful sceneries. It has some of the highest real estate prices in the Tampa housing market and still leaves more room to grow. Here are some stats to help you understand the real estate value of the area:
- Airbnb rental income: $3,773
- Traditional rental income: $2,223
- Median property price: $925,876
- Average Airbnb cap rate: 1.64%
Of course, such a central location makes for the perfect rental properties. Additionally, combined with the vitality of tourism in the area, it’s suitable for the best short-term rentals and Airbnb vacation rentals.
Courier City
This neighborhood falls within the appreciating Tampa housing market. With houses, condos, townhouses, and many housing developments rising in the area, it makes the best for investment properties or for homebuyers to raise a family. To be exact, check out these real estate stats:
- Airbnb rental income: $2,424
- Traditional rental income: $1,988
- Median property price: $411,795
- Average Airbnb cap rate: 2.24%
North Hyde Park
North Hyde Park is another great Tampa housing market spot. With housing developments and properties lining the street, it marks a great spot to raise a family and live peacefully. Houses and apartment rentals are popular in the area as more residents are taking advantage of the amenities the place offers. Here are some real estate stats to clarify:
- Airbnb rental income: $2,646
- Traditional rental income: $2,141
- Median property price: $647,117
- Average Airbnb cap rate: 1.2%
These were our top picks for the best neighborhoods in the Tampa housing market. Whether you’re a novice or expert real estate investor, the Tampa real estate market can offer you an opportunity to step into the real estate market and generate a substantial rental income. Many have done it and so can you! Start investing in Tampa real estate today!
If you have any more insights on the Tampa housing market, please share them with us in the comments section below.
