Tampa Q4 Multifamily Market Insights: Rents and Prices Spike as Demand Outpaces Supply
Highlights:
- Very strong operating conditions were recorded in the Tampa apartment market during 2021 as the local economy recovered, vacancies tightened, and rents advanced at an unprecedented pace.
- Rents surged 30.2 percent in 2021, the strongest annual rent increase ever recorded in Tampa. While rent growth occurred in each quarter, it was most prominent in the middle of the year when rents increased by more than 11 percent in both the second and third quarters.
- Vacancy in Tampa improved by 150 basis points in 2021, ending the year at 3.8 percent.
- The investment market continued to strengthen through the end of the year. Transaction activity picked up in the final quarter, increasing by 45 percent from the previous period. The median sales price in 2021 spiked to $217,700 per unit while cap rates compressed to 3.5 percent by the end of the year.
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