Tampa Multifamily Report – February 2023
After a strong run, growth is now closer to historic averages.
As rent growth patterns began to change at the end of 2022, Tampa’s multifamily sector found itself in a strong spot. The metro’s average rate was $1,798 as of December, following a 0.5 percent slide on a trailing three-month basis. Strong development and a propensity for adding upscale inventory to Tampa’s rental stock have pressured the average occupancy rate in stabilized properties to 94.7 percent as of November.
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Employment gains in Tampa trended 60 basis points above the national rate, at 4.7 percent as of October. Unemployment was at 2.6 percent as of November, as the metro was on par with the state. The local economy is anchored by the trade, transportation and utilities sector, which added 20,000 jobs in the 12 months ending in October. Ongoing projects such as a convention center expansion, riverfront developments and a proposed medical village will likely further the metro’s economic progress.
Tampa’s multifamily transaction volume was $4.6 billion in 2022, as investment recorded its second-strongest year of the past decade. With per-unit prices at an all-time high of $234,262, investment will likely slow, as ongoing economic pressures have increased the cost of capital. Development in Tampa Bay also recorded a solid 2022, with 7,268 units delivered, accounting for 3.0 percent of existing rental stock.