The Tampa-St. Petersburg area experie
nced healthy growth in October 2020, ranking #5 for homebuilding prospects and #6 for overall real estate prospects, according to a recent PwC report.
Growth in Metro Tampa Bay real estate has been strong for years, fueled by a combination of cities investing in public projects and private development. Despite the global disruptions in 2020, overall real estate prospects in Tampa are extremely strong.
The Impacts of COVID-19 in Tampa-St.Petersburg
Many of the U.S. real estate markets were hit hard by COVID-19. High levels of uncertainty in early 2020 fuelled speculation as to how the U.S housing market would respond to these unprecedented levels of disruption.
The pandemic served to accelerate suburban growth. As more people are working from home, there is an increased demand for larger homes. Buyers are interested in suburban homes with more room, away from busy cities. Location independence is also drawing more people to the Tampa-St. Petersburg area from other parts of the country.
Some areas in Tampa-St. Petersburg continue to do exceptionally well. Nationally, sunbelt markets, in particular, are booming. The overall Tampa-St. Petersburg property market, therefore, continues to show great promise as we advance into 2021.
Overall Real Estate Prospects
The Tampa-St. Petersburg property market is experiencing noticeable growth. Investor demand is categorized as strong in the PwC report, scoring 3.70 out of 5 on the market perspective scale. Development/redevelopment opportunities were also ranked as strong, scoring 3.65 out of 5.
The local Tampa-St.Petersburg’s economy is supportive of massive real estate growth. Local public and private investments were categorized as average, scoring 3.48 out of 5 in the PwC report. Furthermore, equity capital availability was categorized as strong, with a score of 3.58 out of 5.
In October, Tampa-St. Petersburg ranked 6th for overall real estate prospects and 5th for homebuilding prospects, out of eighty residential areas nationwide. The area has emerged as one of the COVID-19 boom markets, alongside Austin, Phoenix, and Salt Lake City.
These four metropolitan areas experienced less exposure to COVID-19 and offer affordable housing access in a desirable metro location, resulting in a demand boost and subsequent appreciation in property prices. It is expected that the Super Sun Belt areas are now among the fastest-growing economies in the U.S.
Related: Tampa Among Hottest 3 Housing Markets Predicted for 2021
Internal Exodus
Analysts are attributing market health in areas like Tampa Bay to emerging trends in the single-family housing market since COVID-19. More people and businesses are on the move. In general, people are relocating from the city to the suburbs.
Because of this trend, single-family housing markets are experiencing higher growth. Consumer shifts had already begun before the pandemic struck. Still, the new normal around the U.S. has served to spur relocation as people leave expensive, densely populated urban areas in favor of other locations.
Dramatic shifts in working style and the digitization of workplaces have also fuelled the exodus from urban powerhouses. These trends appear to be here to stay, as 94% of real estate professionals now agree that companies will allow employees to work remotely in the future.
Many Americans want to get away from high-density cities not only for their health but as a way to avoid the high cost of living in cities and the difficulties associated with city life, especially with the introduction of restrictive public health measures. Plus, record-breaking low mortgage rates are helping people obtain mortgages to purchase homes outside the city.
Markets Prevail Despite Disruption
In the wake of a global pandemic, the Tampa-St. Petersburg metro has proven itself a property market magnet, exceeding the national average growth rate for real estate. With more people working from home, areas with accessible housing markets and low COVID cases are experiencing noticeable growth.
Cost-conscious families and businesses are gravitating toward the Tampa-St. Petersburg area. As development and demand continue to grow, further real estate market growth and expansion are expected.
Related: How to Know You’re Ready to Buy a Home
Marimark Realty
Marimark Realty, home to the top South Tampa Realtors, focuses on providing a personalized experience for buyers and sellers of real estate. As a full-service real estate agency, we help clients with luxury homes, homes for first-time homebuyers, commercial property, and investment property.
To begin the journey of purchasing or selling your home, or purchasing commercial or investment properties, contact us at your earliest convenience.