Tampa, FL Multifamily Market Report
Tampa’s economy has demonstrated resilience in recent years and ranks among the strongest in Florida. Over the past decade, Tampa’s population has increased by more than 412,000 people, averaging about 790 new residents per week. As of mid-2023, the Tampa region leads the state of Florida in job growth, with an addition of 60,500 jobs over the trailing 12-month period. Notably, nearly every job sector in the Tampa region has experienced year-over-year (YOY) growth. This has caused the market to undergo significant shifts, moving from robust rent increases and high occupancy levels to a cooling of renter demand. A surge in development has led to a growing imbalance between supply and demand, with rent rates starting to contract in certain submarkets.
- Tampa saw the delivery of 6,573 units in the past 12 months, while 4,487 units were absorbed.
- H1 2023 witnessed a sales volume of about $325 million.
- Luxury Class A communities in Tampa have experienced asking rent rate decreases of 1.0% YOY, while Class C properties continue to raise rates by 3.6% YOY.
- Much of the recent development in Tampa has been concentrated in Class A properties.
Rents | Vacancy | Construction
Luxury apartment communities in Tampa have some of the highest concession rates in the region.
Rent growth in Tampa has seen a notable slowdown, seeing an annual decline of 0.4% as of Q3 2023, with the current asking rent at $1,763. Alongside this trend, the vacancy rate has risen by 0.6% over the past year, reaching the current rate of 8.0%. Notably, the absorption of Class A multifamily properties has been robust, with approximately 4,200 units absorbed in the past 12 months, while the demand for Class B properties has been limited, with only 700 units absorbed. Tampa’s construction pipeline is significant, with 17,995 units under construction. These units are expected to increase the market’s inventory by 8.3%, which is significantly higher than the national average growth rate of 5.1%.
The Tampa multifamily market has witnessed a sales volume of $1.4 billion in the last 12 months. Private buyers have accounted for a majority of the transactions above $5 million year-to-date, representing 85% of such transactions. The largest sale in the market so far this year was the acquisition of the 773-unit Bell Lansbrook Village, a 4-Star asset, which was purchased for $201 million in July 2023, reflecting a premium of nearly 20% compared to the market’s price per unit average at the time of sale. Cap rates have been steadily rising, averaging 5.1%, and are expected to continue to increase through the end of 2024.
The average sale price for a multifamily transaction in Tampa has averaged $13.3 million in the past 12 months.
Tampa by the Numbers Last 12 Months
- Units Under Construction: 17,995
- Units Delivered: 6,573
- Vacancy Rate: 8.0%
- Asking Rent Growth: -0.4%
- Asking Price Per Unit: $210K
- Sales Volume: $1.4B