April 14, 2023

Tampa Q4 Multifamily Market Insights: With vacancy at a 7-year low, developers ramp up activity

Highlights:

Most property performance metrics improved in Tampa during the fourth quarter, as local vacancy remained at a cyclical low, and asking rents inched higher. Multifamily development picked up in recent months as more than 5,800 units came online in 2022.
Local vacancy was mostly stable from the third quarter to the fourth quarter, finishing the year at 3.6 percent. The rate improved by 20 basis points in 2022 and is 100 basis points lower than the region’s long-term average.
Average rents inched higher in the fourth quarter, ending the year at $1,812 per month. Asking rents rose 6.3 percent in 2022.
Multifamily sales activity picked up somewhat during the fourth quarter, although deal volume has declined significantly from the first half to the second half of the year. The median sales price in 2022 was $210,600 per unit, while cap rates averaged around 4.7 percent during the fourth quarter.