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%.