Writer: Ryan Gandolfo
2 min read November 2022 — With nearly one-quarter of U.S. homebuyers looking to relocate to a different metro area as 2022 winds down, Tampa Bay and the outlying areas are in a prime position for continued population growth.
On Tuesday, a Redfin report highlighted that 24.1% of homebuyers are searching for more affordable metro areas amid rising interest rates and high inflation, with Tampa ranked as the No. 5 U.S. metro area with a net inflow of 5,600. (Net inflow equals the number of Redfin.com home searchers interested in the area minus those looking to leave.)
Despite a cooling housing market, overall real estate prospects in Tampa Bay are top of the order in Florida — the market ranked No. 5 in the recently released Emerging Trends in Real Estate 2022 produced by the Urban Land Institute. Even more impressive is that Tampa and St. Petersburg ranked No. 2 in the U.S. for homebuilding prospects, following only Raleigh-Durham.
READ MORE: Raleigh’s real estate: An area guide to the growth and growing communities
“The resilience and ability to adapt and overcome is what sets Tampa Bay apart. Tampa Bay never stopped and people took notice from other regions, which has led to the increase of relocations here,” Arjen Homes President Arturo Giammugnani told Invest: earlier this year. “You also get great value in Tampa Bay. Whereas beachfront homes on the West Coast might cost $40 million, that same home would cost about $4 million in Tampa Bay.”
But the real estate activity in Tampa Bay has made affordability a pipe dream for some residents. In October, a Zillow analysis revealed that Tampa homebuyers spend 35.5% of their household income on average on mortgage payments — surpassing the already high national average of 30%. And according to the leading real estate website, home values are unlikely to drop down to previous levels until the market sees a significant increase in housing supply.
As for renters, the inflow of out-of-state homebuyers and residents has put an unprecedented burden on their budgets.
“With the growth in the real estate market, affordable housing is becoming an issue. It’s difficult for a nurse or a teacher to afford rent. But you also have the aspect of economic growth that creates jobs and wealth. We want to control the growth by looking at the entire city. The Downtown area has the opportunity to create economic prosperity citywide and it benefits everyone,” City of Bradenton City Administrator Rob Perry told Invest:.
According to Zillow, the average Tampa worker in 2022 would need to work 20 more hours to afford rent compared to five years ago. As for 2023, there’s a possibility that tightened budgets from renters opting to live with roommates or family may force landlords to price their units more competitively.
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