average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 1,080
QUARTERLY COMPLETIONS
YTD: 3,234
Average Monthly Mortgage Payment
Average Monthly Rent
The Tampa metropolitan apartment market witnessed a year-over-year decline of 250 basis points and a quarter-over-quarter decrease of 30 basis points. As a result, the current occupancy rate stands at 94.1%. Among property classes, Class C units led with the highest occupancy level at 94.5%, followed by Class A and Class B units at 94.3% and 93.9%, respectively. Occupancy levels across the submarkets showed minimal variation, ranging from 93.4% to 95.6%. North Pinellas County and Largo/Seminole submarkets stood out for strong occupancy in Q2 2023, whereas the Brandon/Southeast Hillsborough County submarket recorded slightly weaker figures. Looking forward, Tampa’s apartment market is expected to maintain an occupancy rate around 93.5% in the coming year. Despite potential risks from increased supply, the market remains well positioned for a rebound.
In line with the prevailing trend in apartment markets nationwide, the Tampa-St. Petersburg-Clearwater area has seen a moderation in rent price growth compared to the peak gains observed in the previous year. In Q2 2023, rents for new leases saw a modest year-over-year uptick of 0.4%. While this figure falls below the market’s five-year average of 8.4%, such performance in rent change is currently commonplace in most sunbelt markets. With an average monthly rental rate of $1,837, Tampa offers a more affordable option than South Florida, enhancing Central Florida’s appeal for individuals relocating to the state.
When looking at different property classes, Class C units have shown the strongest rent performance in the past year, concluding Q2 2023 with the highest annual increase at 2.8%. Class A units followed closely with a 2.2% annual increase, while Class B units experienced a decrease of 1.1% in annual rent change. Among the various submarkets, South St. Petersburg stood out, boasting the most robust annual rent increase of 6.2%.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Brandon/Southeast Hillsborough County | 93.4% | -2.7% | $1,796 | -3.6% |
| Carrollwood/Citrus Park | 93.9% | -2.5% | $1,764 | -1.5% |
| Central Tampa | 94.3% | -2.3% | $2,499 | 2.4% |
| Clearwater | 94.2% | -2.0% | $1,807 | -0.2% |
| Egypt Lake/Lowry Park | 93.5% | -3.3% | $1,570 | 1.7% |
| Largo/Seminole | 95.6% | -2.0% | $1,743 | 3.4% |
| New Tampa/East Pasco County | 93.9% | -2.6% | $1,821 | -2.4% |
| North Pinellas County | 95.6% | -1.5% | $1,820 | -0.9% |
| North St. Petersburg | 93.6% | -3.1% | $1,875 | -0.7% |
| Peninsula | 93.5% | -1.6% | $1,833 | -3.8% |
| South St. Petersburg | 94.2% | -3.9% | $2,083 | 6.2% |
| Temple Terrace | 94.2% | -2.7% | $1,537 | 3.9% |
| Town and Country/Westchase | 93.7% | -2.2% | $1,864 | -0.6% |
| University | 94.1% | -2.6% | $1,461 | 4.6% |
| West Pasco County/Hernando County | 95.5% | -2.0% | $1,499 | 4.1% |
| Tampa-St. Petersburg-Clearwater, FL | 94.1% | -2.5% | $1,837 | 0.4% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
The apartment investment sector has noticeably slowed due to the impact of rising interest rates on capital markets. Despite a decline in the annual volume compared to 2022, the first half of this year still saw considerable transaction activity. Data from Real Capital Analytics reveals that Tampa recorded sales worth approximately $403.1 million. Notably, the trailing four quarter average price per unit in these transactions saw a significant year-on-year increase of 15%, rising to $273,400.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
In May 2023, the Tampa-St. Petersburg-Clearwater metro area experienced a net gain of 63,300 jobs from May 2022, representing a 4.3% increase in employment. As a result, the unemployment rate in rose by 10 basis points compared to the previous year, reaching 2.7%, which is significantly lower than the national benchmark of 3.4%. The professional and business services sector saw the most significant job gains, with 20,400 positions added, reflecting an 7.2% expansion. Additionally, the education/health services industry realized the greatest sector expansion of 9.1% with 20,200 jobs added. Despite the pandemic’s initial job losses, the current employment base in the Tampa Bay area is approximately 6% higher than the pre-pandemic level in February 2024, amounting to around 86,800 jobs.
May Annual Jobs Created
May 23 Employment growth
May 23 Unemployment rate
3.4% us may rate
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Professional and business services | 20,400 | 7.2% |
| Education and health services | 20,200 | 9.1% |
| Trade, transportation, and utilities | 8,200 | 3.0% |
| Leisure and hospitality | 6,200 | 3.8% |
| Construction | 5,900 | 6.6% |
| Other services | 2,400 | 5.1% |
| Manufacturing | 1,700 | 2.3% |
| Government | 1,700 | 1.1% |
| Mining and logging | 0 | 0.0% |
| Information | (500) | -1.7% |
As of Q2 2023, Tampa’s multifamily housing market is expanding, with 16,338 units under construction and 8,356 set for completion within the next year. This influx in supply calls for a significant increase in demand for complete absorption of these units by mid-2024. However, Tampa continues to attract a steady stream of individuals and families relocating from pricier Northeast cities, which somewhat mitigates these concerns. This trend shows no signs of slowing down and, in fact, is projected to accelerate in the years ahead. Coupled with a thriving local economy, this creates a positive yet cautious market outlook for Tampa’s multifamily housing sector.
