Supply Stays Strong As Fundamentals Soften
Tampa’s multifamily market fundamentals have cooled, amid a robust supply expansion, according to the latest Yardi Matrix Tampa multifamily market report. Advertised asking rents dipped 0.3% on a trailing three-month basis through September, reaching $1,789, just above the U.S. average of $1,750. On a year-over-year basis, advertised asking rents declined 2.3%, with only 16 of the 58 submarkets tracked by Yardi Matrix recording gains.
In July, Tampa’s unemployment figure was 3.8%, outperforming the national rate of 4.3%, as reported in the U.S. multifamily market outlook. Over the 12 months ending in July, Tampa saw a net increase of 34,500 jobs. This marked a 1.9% rate of growth, significantly higher than the 1.3% national figure. The education and health services sectors posted the strongest growth, adding 9,300 positions, for a 15.6% improvement. At the end of September, the metro had 22 fully affordable housing projects in the planning stages. Among these, HP Capital Group is heading a 264-unit project which will replace a lumber yard. The development leverages a state law allowing affordable housing to be built on lots previously zoned as nonresidential.
Developers had completed 5,910 units by September 2024. The metro’s thriving development pipeline included 23,700 units under construction, with an additional 102,000 units in the planning and permitting stages. This year’s first nine months saw $1.4 billion in transactions, mirroring the volume for the same period in 2023.
Read the full Tampa Multifamily Market Report: November 2024
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