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Your Tampa Bay Rental Market Update 2021
Dated: June 10 2021
Your Tampa Bay Rental Market Update
Remember back in 2020 when we had COVID-19 related shutdowns and everyone started working remotely and ditching their rentals in highly populated cities? How could we forget…
For a while, landlords in cities like New York and San Francisco, were offering major discounts on their otherwise highly coveted (aka high priced) rentals while people were avoiding big city areas during the Pandemic. The deepest declines began in the spring months of 2020 just as shutdowns were beginning, followed by another decline for many metro areas at the end of 2020.
However, recent data from apartmentlist.com indicates a strong rebound is happening in many metro areas around our country, with the best deals on rentals already gone in many areas.
For renters, this doesn’t necessarily mean prices are back to where they were before the Pandemic, but it does mean you should move fast if you want to secure a rental at a decent price.
For example, in New York City, rents have increased +4.1% in the just the last month. This is considered massive rent growth over just 30 days, but compared to the same time last year rental prices are still down -10.2%. The market is certainly rebounding, and will probably do so quickly throughout the rest of the year, as long as there are no more Pandemic setbacks, but if you were to rent an apartment now, you would still be getting a good deal.
Conversely, in the Tampa Bay area, our rental market, like many other affordable areas around the country, never lost steam. Rental prices have grown +3.4% in the past month, which is still considered big growth, but the real news here is that compared to this time last year, rental prices are +14.5% HIGHER. The Tampa Bay area has seen 12 months in a row of increasing rental prices as more people move to Florida and select the Tampa Bay area as their new home.
In fact, the rental rate growth in the Tampa Bay area has been so steady, that we are leading the state average of +10% and the National average of +5.3%.
So what does this mean?
Basically, if you plan on renting a home in the Tampa Bay Area, be prepared to pay top dollar, as rental properties are in high demand and prices are expected to continue to grow throughout the rest of the year.
If you’re a landlord or thinking about purchasing rental properties in the Tampa Bay area, you’re likely going to pay top dollar for your next rental property thanks to low housing inventory, the high rental occupancy rates, and low interest rates that are driving up prices. The upside to this market is that while you may be paying top dollar for rental properties, the right ones will be highly profitable as the population and demand for housing in the Tampa Bay area increases.
Wondering if you should be buying rentals in Tampa or St Petersburg? You’re probably going to find similar demand in both cities. In St Petersburg, rents have grown +13% year over year and in Tampa that number is slightly higher at +14.5%. However, the fastest rental growth has actually been in the Clearwater area of Pinellas County (see below for comparisons of some of our top rental areas) with prices rising a whopping +15.9% year over year.
If you’ve been thinking about buying rental properties in the Tampa Bay area, give us a call at (727) 400-3315 to get help with your property search around the Tampa Bay Area.
Thinking about selling one of your rental properties? We can help with that too. We have an experienced team of Realtors with local expertise in pricing & selling income properties in Tampa Bay and we would love to speak with you!
Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....
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