Tampa Multifamily Report – February 2024

The coastal metro expects even more deliveries in the year ahead.

Tampa’s multifamily market posted steady progress in 2023, recording more typical performance following two remarkable years. The average rent closed the year at $1,793, following a 0.3 percent decline on a trailing three-month basis through December, on par with the U.S. rate, which clocked in at $1,709. Still, demand remained stubbornly steady. The occupancy rate in stabilized properties reflected that, down just 50 basis points in the 12 months ending in November, to 94.1 percent, despite three consecutive years of record deliveries.

Tampa employment expanded 3.1 percent in the 12 months ending in October 2023, or 41,500 net jobs, well ahead of the 2.3 percent U.S. figure. In addition, the metro’s jobless rate stood at 3.1 percent in November, outperforming the 3.7 percent national figure. While market conditions remained positive, the rate was 50 basis points higher than in January 2023. Financial activities and information are the two sectors that lost jobs in the 12 months ending in October, shedding 6,700 positions combined. Education and health services led gains, adding 25,800 jobs, accounting for more than half of the total.

Developers delivered 8,384 units in 2023, a new decade high for Tampa. Of the 22,263 units underway in December, 14,683 apartments broke ground in 2023, marking a 50 percent increase from 2022’s figure. Meanwhile, the annual investment volume totaled just $1.7 billion, and the price per unit fell 18 percent year-over-year.

Read the full Yardi Matrix report.

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