Tampa, Florida, is one of the fastest-growing cities in the U.S. and boasts a strong housing market that’s held up to correction pressures through this point. With a diverse economy, large tourism sector, and growing population, investing in the Tampa Bay area is a no-brainer for anyone looking for long-term growth.
Population and Labor Market
Located in the southwest portion of Central Florida along the “I-4 Corridor,” the Tampa Bay metropolitan area consists of three cities: Tampa, Clearwater, and St. Petersburg. As of 2021, the total population tracks at just over 3.2 million, making it the 18th largest metro in the country.
Below, you’ll see that Tampa has grown consistently over the last decade, except for a minor decline in 2020. This growth trend is expected to continue as more and more people move into the area.
Tampa is home to several major employers across a range of industries, including healthcare, finance, cybersecurity, and tourism. The unemployment rate is currently pegged at 2.6%, which is nearly a full percentage point lower than the national average.
Tampa also features a median age of 35.9 years old, which is within the peak household formation age range and will help prop up housing demand for the foreseeable future.
Home Prices
Home prices in Tampa have remained stable during the housing correction. As you can see in the graph below, YoY growth is declining rapidly, but home prices have remained at their peaks near the $350k-$375k mark. The lines on this graph aren’t so different than what we’re seeing from other strong markets in the U.S., such as Dallas and Fort Worth.
While these prices might decline in the near future due to…