Tampa Multifamily Report – July 2022
Boosted by healthy fundamentals, multifamily deals reached $3 billion in five months
Multifamily continues to be one of the leading growth sectors for Tampa Bay’s real estate industry. The current economic landscape—defined by rising interest rates, increasing prices and high inflation—has not yet dampened demand nor curbed the upward climb of rents. On a trailing three-month basis through May, rates rose 1.2 percent to an all-time high of $1,797.
Tampa’s job market has been steadily improving, with the employment rate expanding by 5.0 percent (81,200 jobs) in the 12 months ending in March. Leisure and hospitality (22,700 positions) and trade, transportation and utilities (21,500) led the way. Through a multiphase $2.9 billion program—known as PIPES—the City of Tampa is aiming to bring water, wastewater, stormwater and transportation improvements to four underserved neighborhoods: East Tampa, MacFarlane Park, Forest Hills and Virginia Park. But authorities are also partnering with private developers in mixed-use projects: The $300 million Rome Yard development is being built on a city-owned parcel in West Tampa.
As of May, developers brought online only 1,776 units, with deliveries marking a slowdown compared to the first five months of 2021. Investment activity stayed elevated, with $3 billion in multifamily assets changing hands. Considering the real estate industry is sensitive to any changes in interest rates, it remains to be seen how recent spikes will impact deal flow and property values .