If you’re interested in real estate investing, you’ve probably heard about the booming market in Tampa, Florida. Whether you’re a beginner or a seasoned real estate investor, you won’t want to miss out on the opportunities in this market. In 2016, Tampa ranked as one of the top 5 areas in the country to invest in real estate by BiggerPockets and investors experienced an average gross return of 17.62 percent on their properties.
The population in Tampa is growing and that means that new residents will need affordable housing options. The area had the fourth-highest population growth in the nation last year, gaining 58,000 new residents. The area has seen steady job growth in the last four years, at a rate of 2.9 percent. This stable job number is exciting for investors, because they can expect a steady influx of people to the city and general economic growth in the future. On top of that, Tampa currently has an unemployment rate of 4.6 percent and it’s continually decreased since the recession of 2009, when unemployment was at 11.6 percent high. These low numbers mean less tenant turnover for those who are investing in rental properties.
Many neighborhoods in the Tampa area are offering steady growth, but since this area is in high demand with real estate investors, now is the time to make your move. In June 2017, the median time a home in the Tampa tri-county area stayed on the market was only 21 days. Many investors have also been drawn to the area, because of the huge number of affordable foreclosed homes for sale. 2.16 percent of mortgaged homes in Tampa Bay were in a stage of foreclosure in late 2016, so it’s important for investors to move quickly.
The current median home price in the metro Tampa area is $184,900, up a whopping 10.5 percent from last year. The average monthly price for rental properties in Tampa is $1,362, an increase of 0.7% over the past month. This is up 4.1% in comparison to the same time last year and is the fifth straight month that the city has seen rent increases. Tampa’s year-over-year rent growth leads the state average of 3.1%, as well as the national average of 2.9%.
Investors looking for new opportunities will find boundless potential in the Tampa area. With steady job and population growth, as well as rising home values, there’s so much to be excited about for the Tampa real estate investor.