Did you know Tampa, Florida, was the hottest housing market in the U.S. in 2022?
A Zillow study shows that Tampa outranked other popular cities like Atlanta, Austin, Nashville, and Phoenix for several reasons, including the number of potential buyers and a booming job market.
Given our local housing market was hot last year, what’s the current outlook for this year? Here’s a look into what experts say is in store for the Tampa housing market forecast in 2023.
Overview of the Tampa Real Estate Market
In addition to beating out other top U.S. cities, the Tampa housing market continues to outpace or rank evenly with the following Florida cities:
Although national housing market trends are slowly cooling, experts say Tampa will remain on fire in the coming years.
The rental market is also hot because many Tampa residents struggle to find a home they can afford to buy. The price-to-rent ratio is 20, which is high. The higher this ratio, the more practical it is for residents to rent than buy their Tampa home, so the area is also full of rental property investors.
The metro population of the Tampa Bay area is about 3.2 million. The region comprises three main cities:
- St. Petersburg
Most of the area is in Hillsborough County and Pinellas County.
The unemployment rate in the Tampa area continues to decline. Data from the U.S. Bureau of Labor Statistics put the region’s unemployment rate at 2.6% in November 2022.
Median Household Income
U.S. Census Bureau data states that the median household income for the Tampa area is around $60,000. This is about $10,000 less than the national average.
Tampa Housing Market Forecast
One key factor to keep in mind is that Tampa is still very much a seller’s market in 2023 – meaning this market favors sellers over buyers because inventory is low and demand is high.
Thus, prices will remain elevated. While not the best news for first-time home buyers, the average appreciation rate is nearly 6%. Whether a potential homeowner or investor, you can expect excellent returns on a home purchase in Tampa.
Tampa is facing low inventory. So naturally, this pushes housing prices even higher.
Considering all the current active listings on the market, with more than 2,100 on Redfin alone, it’s still insufficient to keep up with demand. Tampa’s goal is to build an additional 10,000 affordable homes by 2027 to help resolve this situation.
Despite low inventory, Tampa is still relatively affordable compared to other metro areas, like New York City or San Francisco. So if you’re considering a home purchase, check out my new home listings in Tampa to see what’s available and get your foot in the door.
December 2022 data from Realtor puts the median listing price in the Tampa area at $410,000 (about $265 per square foot), trending up more than 17% year-over-year. The median sale price was nearly $370,000.
This short-term price increase is genuinely astonishing. And it’s causing some Tampa residents to move to other places.
Experts also predict the median home price to remain high through 2023 and next year.
New residents are driving demand in the Tampa Bay housing market. During the pandemic, Americans from major U.S. cities flocked to Florida and quickly purchased lower-cost homes for sale. With cheaper home values that are appreciating quickly, it was an excellent idea.
Not to mention, Tampa’s affordability is much better than in places like Chicago or Los Angeles. With a lower cost of living, residents get more bang for their buck. For example, healthcare costs are 4% lower than the national average.
For those who want to take advantage of the benefits of living in Tampa, you’ll need to prepare to beat demand. As interest rates rise, what you can afford will change. Get a pre-approved mortgage rate from a lender before making any home offers so sellers will take your offer more seriously.
Tampa Real Estate Experts
The Tampa housing market forecast for 2023 is bright. If you’re ready to buy or sell a home in the Tampa area, contact me today. I love being a local and living the Tampa lifestyle. I am thrilled to be your resource for all things Tampa!