A recent report from real estate firm Cushman & Wakefield shows continued growth in multi-family housing projects in Tampa Bay, reports Susan Taylor Martin for the Tampa Bay Times. The area is still leading other areas with significant growth such as Orlando and Jacksonville.
According to the report, “Tampa Bay’s population growth in the key renting demographic between the ages of 20 and 35 (is) projected to grow at three times the national average through 2020. This growth will drive further construction in apartments in the urban and suburban markets.”
Millennials and baby boomers are also contributing to the market with a “generational sandwich” effect; many millennials are renting longer before buying a house, while at the same time boomers are downsizing to smaller homes with easier maintenance.
This effect has lead to a spike in rent, with the average asking price in Tampa increasing to $1,186 per unit. This trend may be slowing, however. Sales are dropping, and construction and land prices are increasing.
According to the report, developers who wish to stay ahead of the market should look into affordable housing, building in areas with good schools that would appeal to young families, and housing for seniors in accessible areas.
Read the Tampa Bay Times article here.