The Commercial Real Estate Alpha Site

EMPLOYMENT – 66,000 Jobs will be created

The pace of hiring exceeds the national

rate by more than 2 percent, as local

employers expand headcounts by 4.6

percent this year. Unemployment in

the metro was at 3.0 percent entering

March, 40 basis points below the pre-

COVID-19 rate.

CONSTRUCTION – 6,500 Units will be constructed

Supply additions exceed the 6,000-

unit mark for the second straight

year, as developers increase rental

inventory by 2.4 percent in 2022.

Completions in New Tampa-East

Pasco County will surpass 1,000 units

this year for the first time on record.

VACANCY – 10 basis point decrease in vacancy

Renter demand outpaces deliveries in

2022, supporting a third consecutive

year of annual vacancy compression

in Tampa. By the end of the year,

availability will fall to 2.1 percent, 260

basis points below the metro’s yearend

2019 rate.

RENT – 13.7% increase in effective rent

Record-low vacancy rates dissipate

the need for concessions, stimulating

annual rent gains for the 13th year in a

row. The average rate will reach $1,876

per month in 2022, ranking Tampa

third among all major United States

markets in rent growth this year.

Elevated Migration Trends Bolster Renter Demand

and Investment Activity in Tampa-St. Petersburg

Constrained housing market benefits rentals.

Tampa-St. Petersburg experienced its largest spike in new apartment leases

on record over the past year ending in March, with renters

absorbing more than 11,200 units during this span. Entering the

second quarter, availability was at 2.1 percent — the lowest rate

in over two decades. The entire metro is experiencing record

levels of rent growth, with all 15 submarkets registering gains

that exceeded 20 percent over the past year. The extremely tight

single-family housing market is greatly benefiting multifamily

fundamentals in Tampa. As of February, there were just over

3,000 active single-family listings throughout the market, compared

to the 16,000 listings during the same month in 2019. This

is creating challenges for prospective entry-level home buyers,

further bolstering demand for rentals.

Forecasts and Research provided by Sources: BLS; CoStar Group, Inc; Realpage, inc.

To learn more about your properties current range of value, visit DPCRE here