Tampa Bay saw biggest rent hikes in US this year

Average up 24 percent, leading all markets with 100,000 or more apartment units

Miami Weekend Edition /
Dec.December 26, 2021 11:00 AM
Tampa Bay (iStock)

Tampa Bay (iStock)

Tampa Bay claimed more than a Super Bowl this year, leading the nation on rent increases in the months after its hometown Buccaneers led the National Football League.

CoStar Group data shows rents in the metro area increased 24 percent, on average, over the last 12 months, according to the Tampa Bay Times. That’s the most for any city with at least 100,000 apartments.

Landlords in the region along Florida’ gulf coast have had room to hike rents because of unprecedented demand, thanks in large part to new residents looking for cheaper costs of living, fewer pandemic restrictions, and the warmer climate. Strong demand is also driving rising home prices.

“You have would-be homebuyers being priced out of the market” and remaining renters longer, said Tampa-based CoStar senior market analyst Erin Amon-Surlis “It’s kind of a perfect storm of all those supply constraints… combined with strong demand.”

In terms of dollar amounts, landlords raised annual rents by about $315, to around $1,600 on average . Some neighborhoods saw more significant hikes — prices in West Tampa rose 29 percent.

The Tampa Bay metro area–which includes the cities of Tampa and St. Petersburg, along with various suburbs–remains relatively cheap compared to most other parts of the country. They’re still $200 under the national average and $2,000 below market such as New York City.

Incomes are not rising at the same rate however, putting the squeeze on lower income residents. Aloha Kelm, who lives in a 55-plus mobile park home in the Town ‘n’ Country neighborhood of suburban Tampa, said it is probably the only place she could afford to live in the area.

“A lot of people are moving in and sharing expenses with each other because the rents in all these darn places are just unreal,” Kelm said.

That means there is also strong demand to buy rental properties. Colliers International managing director Shawn Rupp said buyers outnumber sellers “20-plus to one.”

Downtown Tampa is also undergoing a transformation. Massive development projects such as Strategic Property Partners 56-acre Water Street Tampa development have the potential to draw in an even wealthier crowd, which could in turn drive demand for housing in the wider area.

[Tampa Bay Times] — Dennis Lynch





    Related Articles

    arrow_forward_ios
    MG Developer's Alirio Torrealba and rendering of Merrick Parc (MG Developer)
    MG plans $204M luxury apartment project near Coconut Grove
    MG plans $204M luxury apartment project near Coconut Grove
     Clearline Real Estate's Jenny Bernell with Block E at 1550 (Smith Aerials)
    Ex-Kushner exec Jenny Bernell picks up A&E District development site in Miami for $20M
    Ex-Kushner exec Jenny Bernell picks up A&E District development site in Miami for $20M
    Dacar Management's Alberto Micha-Buzali with Residences and Shoppes (LinkedIn, Dacar Management)
    Dacar scores $81M loan for Publix-anchored mixed-use project in Hialeah
    Dacar scores $81M loan for Publix-anchored mixed-use project in Hialeah
    184 Sunset Avenue in Palm Beach with Benchmark's Jordan Vogel and Aaron Feldman (Apartments, LinkedIn, Getty)
    Benchmark drops $17M for historic Palm Beach apartment building
    Benchmark drops $17M for historic Palm Beach apartment building
    David Barry, principal, Ironstate Development along with a rendering of the proposed eight-story building between Northeast 26th and 27th Streets in Wynwood (Ironstate, 5G Studio Collaborative)
    Developer proposes Urby-branded apartments on former Art by God site in Wynwood
    Developer proposes Urby-branded apartments on former Art by God site in Wynwood
    the Church of God Evangelical at 12830 Northeast Sixth Avenue in North Miami with Daniel Jaramillo and Tomas Sinisterra of Strategic Properties based in Miami (Google Maps, LinkedIn)
    Praying for a profit? Developers plan multifamily project on North Miami church site, adjacent property
    Praying for a profit? Developers plan multifamily project on North Miami church site, adjacent property
    Blue Road’s Marcelo Tenenbaum and Jorge Savloff with Emblem Tower (Northmiamifl, Blue Road, iStock)
    Blue Road plans 20-story, 139-unit multifamily project in North Miami
    Blue Road plans 20-story, 139-unit multifamily project in North Miami
    renderings of the proposed three-tower development on the site of an existing Hyatt and the James L. Knight Center on the Miami River at 400 Southeast Second Avenue, Miami (Arquitectonica, Gencom, LinkedIn)
    Third time’s a charm? Hyatt and Gencom unveil new plan for hotel, apartments on James Knight Miami River site
    Third time’s a charm? Hyatt and Gencom unveil new plan for hotel, apartments on James Knight Miami River site
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...