Real Estate Pulse: Tampa’s Rental market is on fire! Act on it or the property will be gone in a flash!
Real Estate Pulse: Tampa’s Rental market is on fire!
Act on it or the property will be gone in a flash!
SI Real Estate is
a full service real estate boutique in Tampa Bay, including property management.
We have seen a significant increase in
rental activity since February, 2015. As the year has progressed, so has the
interest in Tampa’s rental market! Right
now, our agents are finding that rental listings are gone in a New York minute.
We are receiving calls and emails from
an abnormal amount of new residents relocating to our area, causing the demand
to drastically outweigh the supply.
This trend has not
gone unnoticed by property developers in the area especially our urban core.
They are purchasing land and building multifamily high end rentals, rather than
luxury apartments or condos for sale. Jeff
Vinik has been at the forefront of this new demand. Starting with revitalizing
the Channelside District. The city of
Tampa and developers are adding exciting urban attractions such as the popular
Tampa Riverwalk. "I think people are buying into the story now that
downtown Tampa will become a real downtown," Mike Davis, an executive
director with Cushman & Wakefield of Florida Inc. We are noticing the same effect, with interest
in areas/price points that have not been popular in the past for our local
rentals.
Here in Tampa,
rentals have always been available as long as you have a fair budget. In SI
Real Estate’s experience lately, this has not been the case! The vacancy rate
of the rental market here has been pretty average the past 15 years, until now.
Our vacancy rate has hit a 9 year low this year, 4.9% of all apartments here
are vacant. That figure is lower than all 19 other southeastern metro areas that
the company tracks. Now we know why we are having a tough time scheduling
showings for rentals! They are gone as soon as they come up online or on the
MLS. Our landlords are using this high
demand as a great reason to bump the rent pricing back up to pre-recession
rates. Another market correction underway… Possibly the final stretch!
Apparently
developers want in on all the action the rental market has been seeing. “Data
from Vertica Partners LLC in Tampa shows more than 10,000 potential units —
projects in various stages of development, between downtown Tampa, South Tampa
and the Westshore area.” These areas are the crème-de-le-crème and seek the
highest rent in Tampa Bay. They must be listening to market experts who are
echoing that the vacancy rate will stay this way for the next year and a half.
Rent prices will also keep rising according to industry leaders. By Real Data's
figures, “the average monthly rent for a two-bedroom bay area apartment this
year is $1,046 — $40 a month higher than a year ago and $176 higher than in
2010. Rents are expected to rise another 2 to 3 percent annually, the most in
the Southeast, the report says”. SI Real Estate will keep an eye on the market
while we remain incredibly busy putting families into homes, rentals and
buyers! Are you in?
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