Tampa Q2 Multifamily Market Report: Hiring Surge, Population Gains Fueling Unprecedented Rent Growth
Highlights:
- The Tampa multifamily market ended the first half of 2021 in a very strong position, with vacancy rates below 5 percent, unprecedented rent growth, absorption ahead of last year’s pace, and the labor market on an upswing. The strong market fundamentals are expected to continue throughout the remainder of the year.
- Vacancy ended the second quarter at 4.9 percent, matching the level from one year ago. The rate has improved in 2021; year to date, vacancy is down 40 basis points.
- With momentum building in the economy and demand elevated, rents are posting significant gains. Asking rents surged by more than 19 percent year over year, the strongest gain in the nation.
- Transaction activity accelerated, and prices pushed higher during the second quarter. The median price in deals closed to this point in 2021 is $160,000 per unit, while cap rates continue to compress to less than 4 percent. Preliminary indications suggest the second half of this year should be particularly active in the local multifamily investment market.
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