South Tampa Real Estate Market Report

South Tampa Real Estate Market Report featured image

Source: tampabaytimes

The South Tampa area is seeing a lot of growth and development lately, thanks to its prime location and exciting vibe. Whether you’re looking for a quiet suburban neighborhood or a trendy urban enclave, South Tampa has something to offer everyone.

South Tampa is a hotbed of real estate activity, with people buying and selling houses all the time. Prices are increasing every day. If you’re thinking about buying or selling a house in South Tampa, you’ll want to keep track of the real estate market trends.

In this blog post, we’ll share the latest South Tampa real estate market report with you.

Tampa housing market

An Overview of South Tampa Real Estate Market

A record number of residences are being purchased by investors in Tampa. Investors bought one in four properties sold between July and September 2021.

In a recent report, Tampa Bay Times stated that Tampa Bay is the 7th most popular metro location for investors in the United States. 

Prospective purchasers are being pushed into renting because of the soaring cost of housing in Tampa and across the state. Rents have risen by 30% on average in Florida, making it the state with a tremendous increase.

Higher-paying professional and commercial services are creating consistent job growth. As a result of these corporate increases, Tampa’s economy is growing. This means that Tampa and Hillsborough County, where Tampa is located, rapidly expanding need for homes.

Furthermore, Tampa is a fantastic area to live and work. Most other communities in the United States are green with envy at how quickly the Tampa Bay Area attracts new businesses and residents.

There is a wide range of economic activity in Tampa, which includes financial services, technology, tourism, and the largest port in Florida. Many magazines rank Tampa among the most incredible locations to live in the United States, which bodes well for the city’s housing market.

South Tampa Housing Market

The South Tampa real estate market is very competitive. There are many jobs in the area, which has increased the demand for housing.

A strong job market and expanding population mean that the median home price is likely to continue growing.  

Home sales are projected to increase by 9.6% this year, while prices will rise by 6.8%.

Enormous investment opportunities are along the Hillsborough River and Bayshore Boulevard but expect all areas of South Tampa to see significant growth.

If you want to maximize your return on investment (ROI), buy property near downtown Tampa, where there are many developments and new projects.  

Key Stats

  • In Tampa, FL, the typical listing property price was $355K in November 2021, up 10.9% year over year.
  • The median price per square foot for a property on the market was $229 in November 2021.
  • The median price of a property sold was $350,000.
  • In November 2021, Tampa, FL, is a seller’s market, which means more individuals are looking to buy than there are homes available.
  • It takes an average of 50 days for a Tampa, FL home to sell.
  • The 100% sale-to-list price ratio indicates that most properties sell near to, if not at, the asking price.
  • Davis Islands seems to be the most pricey neighborhood in Tampa, with a median home listing price of $2.6 million, while Sulphur Springs is the least costly, with a median home listing price of $190,000.

South Tampa Competitive Renters’ Market

The Tampa Bay Area is one of the fastest-growing areas in the United States. As a result, the demand for rental properties has increased dramatically.

The South Tampa area is ideal for renters because of its proximity to the downtown area as well as other nearby business centers.

First-time homebuyers find it difficult to compete due to increased demand and little inventory.

Tampa’s rental market is also garnering institutional investors’ attention.

Key Stats

  • The average rent in Tampa is $2,250 per month for a three-bedroom property.
  • In Tampa, 48% of households rent homes rather than buy houses.
  • East Side Commercial Area, Northview Hills, and Woodland Terrace are the cheapest neighborhoods in Tampa for renters, with monthly rates ranging from $795 to $1,050.
  • Historic Hyde Park North, Hyde Park North, and Harbour Island are the most expensive neighborhoods for renters, with rentals as high as $5,500 per month.

Many great apartments are available in South Tampa, and the market is constantly changing. Be sure to check out our latest listings to find the perfect place to call home!

Changes In Property Prices And Housing Affordability Over Time

Source: tampabaydatenightguide

Housing affordability is defined as the ratio of median house prices to median household incomes.

It is the most straightforward and accurate way of assessing how expensive it is to buy a home in a given area.

Housing affordability has been worsening every year, which means that buying property in south Tampa is becoming more and more expensive.

It also means that renting is becoming less affordable since wages aren’t rising at the same rate as real estate prices – and it may be a harder task than ever to become a homeowner in south Tampa.

If you’re looking for an accurate snapshot of property prices in the United States, Freddie Mac’s monthly Freddie Mac House Price Index (FMHPI) report is the best place to start your research!

Here are some highlights from the report:

  • HPI for October 2016: 184.3
  • HPI for October 2021: 330.9
  • Home prices have increased by 79.5 percent in the last five years.
  • Change in property prices over a year: 27.2 percent
  • Home prices have increased by 1.9 percent in the last month.

Housing affordability is also researched by real estate developers in Tampa to forecast growing demands for rental homes.

The amount of money you need to make each year to buy a home in Tampa is compared to how much it costs to live there.

A business forecast and a personal financial statement will be made public. Reports on housing affordability are published by Kiplinger every year for the 100 most populous metropolitan regions in the U.S.

The ranking is based on a one-to-ten scale, with one being the most affordable markets and ten signifying the least accessible.

Kiplinger’s estimate of house affordability in Tampa,

  • Tampa home prices have dropped by 3.7% since the last real estate market peak in May 2006, when prices rose the most.
  • The prices of homes in Tampa have gone up 105.7% since the last real estate market bottom in March of 2012.
  • Housing costs aren’t too high or too low in Tampa so many people rent there, which helps to explain why so many people live there.

Housing Forecast For South Tampa in 2022

House prices are expected to rise by 6.5 percent on average every year, which means that owning property in south Tampa is becoming increasingly expensive.

However, incomes are also expected to continue growing at a similar rate, so housing affordability is not projected to worsen significantly over the next decade.

Real estate investors utilize two procedures to forecast future demand for a rental property in a specific area: reviewing historical price fluctuations and determining the affordability of housing in a market.

Below are some inferences based on the two procedures.

Key Stats By Community

  • Home values in the Tampa-St. Petersburg-Clearwater metro area increased by 28.7% in 2021 and is expected to grow by 24.5% in 2022.
  • Tampa home values grew by 27.6% in 2021 and are projected to rise at the same rate in 2022.
  • The median home value in Clearwater, Florida, rose by 30% in 2021 ($300,635). It is anticipated to keep increasing at a similar rate in 2022.
  • Home values in Hillsborough County increased by 28.4% in 2021 (now $334,552) and are expected to continue to rise at the same rate in 2022.
  • In 2021, Pinellas County home values increased by 30.1% (now $326,623) and were projected to rise at a similar pace in 2022.

Final Thoughts

South Tampa is an up-and-coming market that attracts various individuals for different reasons.

It’s a hotspot for tourists and young professionals, and it remains one of the most popular places in the Tampa metro area to relocate after becoming a homeowner.

While South Tampa has always been home to many homeowners since its early days as a small peninsula, the area is anticipated to become increasingly expensive in the forthcoming years.

Housing affordability is in the middle, which explains why many individuals rent their properties rather than buy them. However, it’s still a highly sought-after area and is projected to become even more in demand in the next decade.

If you’re thinking of buying a house in South Tampa, ensure you read about the Property Taxes in South Tampa, FL and, The South Tampa Home Buying Tips You Need to Know.