Price Trends in Tampa Multifamily Real Estate
Price trends for multifamily properties in the Tampa area is a mixed bag. The metro area numbers indicated a 3.0 percent increase in asking price per unit compared to the prior quarter. However, based on year-over-year numbers, the median of $70,454.15 per unit represented a 12.5 percent increase. Looking at the numbers for multifamily properties within city limits, the median asking price declined by 2.7 percent comparing quarterly figures, which was still higher by 4.0 percent at $62,259.23, comparing year-over-year figures.
On a county-wide basis, asking price for multifamily units was flat according to current market trend data. The median asking price of $58,361.12 per unit of multifamily property available for sale was about the same as the prior quarter, but this figure was higher by 9.9 percent based on a year-over-year comparison. The mixed trend in the price movements for multifamily developments is an indicator of the diversity of the area’s neighborhoods as well as differentiation in the property types available for sale. For multifamily properties categorized as Class B or Class C, demand remains strong among investors due to the underlying strength of the rental market as Tampa’s economy is in growth mode. Additionally, the median asking price for Tampa multifamily developments was significantly lower than the state average of $92,396.15, indicating niche opportunities for those interested in investing in multifamily real estate. In terms of total dollar value of multifamily properties for sale in Tampa, the latest data points to a 3.2 percent decline when current figures are compared to the previous quarter’s numbers but a drop of 13.9 percent, comparing year-over-year numbers.
In terms of total dollar value of multifamily real estate in the Tampa metro area, the figures show a decrease of 3.2 percent comparing quarterly numbers. Looking at year-over-year reports, the total dollar value of multifamily properties available for sale dropped by 13.9 percent. Reflecting this trend, the total number of listings for multifamily properties for sale decreased by 6.2 percent, comparing quarterly numbers or 7.1 percent based on a comparison of year-over-year figures. Inventory will be boosted by a new developments entering the pipeline, many of which are located near the downtown core that is currently the center of revitalization efforts.
Demand for Tampa Bay’s Multifamily Properties
Gauging demand based on profile views of multifamily properties for sale, it appears that Tampa metro area real estate eased a bit by 1.5 percent when current quarterly numbers are compared to the prior quarter. However, comparing year-over-year figures showed a 5.9 increase in profile views. The number of listings of multifamily for sale in the Tampa metro area decreased by 0.3 percent on a comparison of quarterly numbers. Using year-over-year figures, multifamily listings dropped by 8.2 percent.
These numbers show that the multifamily sector will remain solid with sustainable growth in pricing as the regional economy heats up and employment opportunities expand. Population growth, a strong jobs market and urbanization will support supply-demand fundamentals, creating interesting opportunities for investing in multifamily real estate in the Tampa area.