Tampa Multifamily Report – November 2022
While the local economy is on track, the rental market is slowing alongside national averages.
Mirroring nationwide trends, Tampa Bay’s multifamily market saw signs of deceleration in the second half of the year. Rents increased by only 0.1 percent in the third quarter, to $1,827, as the gap between quality segments continued to widen. The overall occupancy rate in stabilized properties decreased 90 basis points year-over-year through August, to 95.9 percent, on par with the national figure. Despite flattening rent growth and declining occupancy, key fundamentals remain healthy across the metro.
Tampa gained 76,200 jobs in the 12 months ending in July, marking a 5.0 percent rise and outpacing the national rate of improvement by 50 basis points. All sectors except government added new positions, and trade, transportation and utilities led the way with 19,500 jobs. Several major infrastructure projects have been under construction, such as the airport expansion that began in 2013. The $787 million third phase of the master plan received approval from the aviation authority’s board of directors in September for the construction of a new 16-gate terminal.
Multifamily investment carried on unabated by the cooling economy. In the first three quarters of the year, $4.2 billion in rental assets changed hands, a significant uptick from the $3 billion transaction volume recorded over the same period in 2021. Deliveries also accelerated, with developers completing 5,154 units, 200 more than they brought online last year through September.