Tampa Q3 Multifamily Market Report: Record-Setting Rent Growth Fueling Investment Demand

Highlights:

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• The Tampa multifamily market is benefitting from rapid economic growth and a modest pace of new construction. This undersupply is resulting in tightening vacancy levels and some of the steepest rent increases in the country.
• Vacancy fell 120 basis points in the third quarter, ending the period at 3.7 percent. The rate is down 140 basis points year over year.
• The Tampa market has recorded some of the strongest rent increases in the nation for the past few quarters. During the third quarter, asking rents spiked 11.3 percent, reaching $1,688 per month. Year over year, asking rents have advanced 26.9 percent.
• The investment market continued to accelerate in the third quarter. Transaction activity spiked by approximately 60 percent. Prices are on the rise, with the median price reaching $210,100 per unit and cap rates averaging 3.75 percent.

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