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Market Report

The Tampa real estate market is very hot at the moment, and it will remain a seller’s market throughout 2020. One of the most important indicators in this regard is the rising property prices. In the last 20 years, natural appreciation has amounted to 139%. In the past 12 months, home values increased by 3.8%, while real estate appreciation in Tampa is forecast to slow down a bit to 2.2% in the next 12 months. However, this is still a strong growth. Another major criterion is the relatively low days on market and the lean inventory of Tampa real estate listings compared to the size of the Tampa housing market.

The heavy demand from residential real estate investors will further be supported by the high proportion of renters in Tampa. More than half of the population – 53% to be precise – rent instead of own a home. The robust demand by renters vs. homeowners is driven by the high price to rent ratio. Mashvisor’s real estate market data for Tampa shows that the price to rent ratio in the Tampa housing market will amount to 21 in 2020. A price to rent ratio of 20 and above indicates that the predominant rental rates are less expensive than the dominating property prices, so renting makes more financial sense than buying a home.

Furthermore, the annual PwC Emerging Trends in Real Estate: United States and Canada 2020 report ranks the Tampa-St. Petersburg real estate market at position #11 among the 80 surveyed markets for the upcoming year. According to the Tampa real estate experts who were interviewed for the report, the quality of life and the talent pool constitute the key positive factors. Some negative influences, however, encompass the existing challenges in physical and soft infrastructure including education, marketing, and regional collaboration. Despite these obstacles, being ranked as number 11 by such a prestigious publication is definitely a very optimistic indication.

Altogether, the Tampa real estate market 2020 is expected to retain its ranking as one of the leading locations for real estate investing in the US housing market. As you will see later in this Tampa real estate market report for 2020, both traditional Tampa rental properties and Tampa vacation rentals will yield a high return on investment in comparison with other best places to invest in real estate.