In line with a national moderation in apartment fundamentals, the Tampa-St. Petersburg market is experiencing a gentle easing of rent prices, diverging from the previous year’s peak increments. The third quarter of 2023 saw a modest year-over-year reduction in rents for new leases by 1.3%, a trend currently mirrored across various sunbelt markets. With an average monthly rent pegged at $1,853, Tampa positions itself as a more financially feasible option compared to South Florida, thereby enhancing Central Florida’s appeal for newcomers to the state.
Delving into different property classifications, Class A units have exhibited a stable trend with rent performance remaining positive over the past year at 0.7%. In contrast, Class C units followed with a modest 0.9% dip, while Class B units experienced a more noticeable annual rent decrease of 2.4%. Among the submarkets, Temple Terrace and University notably stood out, recording the most significant annual rent increases of 2.8% and 2.7%, respectively.