Rent Improvement Shores Up Recovery
As the U.S. economy continues to make headway, signs of recovery are becoming more apparent. The multifamily sector has been showing strength, as year-over-year rent expansion returned to pre-pandemic levels. As of May, Tampa was among the leading metros in this regard, with rents up 6.8% year-over-year, while rates edged up 0.7% on a trailing three-month basis to $1,382, below the $1,428 U.S. figure.
According to May preliminary data, unemployment stood at 4.9% in Florida and 4.6% in metro Tampa, both below the 5.8% national rate. According to the Florida Department of Economic Opportunity, employment in the Tampa area private sector increased by 100,300 jobs, up 8.9 percent year-over-year through May. As a result of the American Rescue Plan, the city of Tampa and Hillsborough County are set to receive $366 million in relief funds aimed at small business aid, infrastructure, education and rental and mortgage assistance.
Tampa had 17,287 units under construction as of May, with 91% of those targeting high-income renters. Yardi Matrix expects 2,914 apartments to come online in the metro by year-end. Meanwhile, more than $1 billion in rental assets traded in the first five months of 2021, a 38% uptick compared to the sales volume recorded in the same interval in 2020.
Read the full Matrix Multifamily Tampa Report-Summer 2021