Warm Climate Boosts Tampa’s Rental Market
Mirroring nationwide trends of contrasting growth between gateway markets and lower-cost metros, Tampa’s rental market not only proved resilient in the face of economic hardship but also showcased strong performance in 2020. The metro led the top 30 markets for short-term rent gains in December, while rents on a trailing three-month basis were up 0.8% to $1,337, just below the $1,462 U.S. average.
In the 12 months ending in November, Tampa’s employment sector shed a combined 63,900 jobs, with leisure and hospitality carrying the weight of the loss (down 31,000 jobs). While job improvement is still sluggish, Tampa led growth in small-business employment as of December, according to the Small Business Employment Watch by Paychex. For December, the metro’s overall index stood at 96.84.
Tampa had 14,157 units under construction as of December, with 85% of those aimed at high-income renters. More than half of the pipeline (62%) is expected to come online in 2021. Some $2.5 billion in assets traded in 2020 through December, for a 36% decline from 2019. While the pandemic curbed sales activity, the moderation came after the decade’s cycle peak of $3.8 billion in 2019.
Read the full Matrix Multifamily Tampa Report-Winter 2021