By: Jay Rosado, NMLS#1836066
The Tampa Bay area has significantly transformed its rental market over the past four years. Whether you are a current or prospective resident of Tampa, you might be pondering whether purchasing a home or continuing renting in this evolving market is better. Let’s dive deep into the Tampa Bay market if that’s the case.
Tampa’s Real Estate Landscape
Let’s focus on the city of Tampa itself. Among the 34 cities in the greater Tampa Bay area, Tampa stands out, ranking second for having the highest 10-year home price growth nationwide. This growth rate signifies the city’s robust real estate market, making it an attractive prospect for those considering homeownership. Notably, these figures are not isolated; they reflect a broader trend in Tampa Bay’s real estate landscape.
Rental Trends in Tampa Bay
One undeniable trend is the substantial increase in rental prices throughout Tampa Bay. Over the last four years, the rental market has experienced a notable upswing, impacting residents and potentially influencing their housing decisions. According to Forbes, the median rent for a two-bedroom apartment in Tampa surged to $1,765 in 2021, about $610 more per month than in 2020 and higher than the national average of $1,282. This sharp increase underscores the growing demand for rental properties and the changing dynamics of the housing market in this region. Presently, rental prices have leveled off but still have had a total increase of 38% from March 2020.
Owning a Home: A Path to Wealth Building
While renting provides flexibility, owning a home can be a powerful wealth-building strategy. The Tampa Bay area, in particular, offers a promising environment for property appreciation. This appreciation allows homeowners to benefit from property values rising over time. Notably, the median sale price in Tampa has risen by an impressive 19.7% from $380,000 in August 2022 to $455,000 in August 2023. This upward trend positions and allows homeowners to build equity and potentially enhance their financial portfolio through wealth building.
Short vs. Long-Term Advantages
When you’re looking at renting an apartment versus buying a house and which one may be more financially viable, there are other Factors to consider. For instance, renting will cost less upfront than purchasing a home and putting down a down payment. Those who own the properties, not the renter, will also be responsible for addressing and paying for maintenance if something needs repairs. At the same time, renting a property will limit how you customize your space. Most importantly, rent can be subject to increases in rent and utility costs. This consistent pricing change can make long-term financial planning more difficult.
On the other hand, buying a property can help you out in more ways than one. Homeownership leads to an opportunity to build equity, especially if you know this will not be your home for the rest of your life and are looking to sell it at some point. You also have more freedom to personalize your space, seeing that it’s yours. Some of the costs can be readily apparent from the first moment that you’re looking to buy a house, specifically with upfront costs: down payments and closing costs are expensive and are due right away, as are property taxes and home insurance. The market can also be highly volatile, leading to impacted property values and less of a chance to be flexible with your buying and selling process due to market conditions.
In conclusion, the decision to buy or rent in Tampa Bay hinges on various factors in your life. The rising rental prices indicate a competitive market for tenants, while the appreciating home values underscore the potential for wealth accumulation through homeownership. The Tampa Bay area’s real estate has proved to be dynamic, presenting challenges and opportunities that require proper guidance to navigate successfully, such as having a knowledgeable realtor and a reputable mortgage broker.
As licensed mortgage brokers, we are attuned to these market dynamics, allowing us to provide you with valuable insights and the most competitive loan options. Choosing to collaborate with us not only streamlines the path to homeownership but also unlocks a wealth of expertise, personalized guidance, and access to diverse financing options, making your home journey seamless and rewarding!
Whether you are a first-time buyer or looking to refinance, My Easy Mortgage, a reputable mortgage broker located at 2405 Creel Ln STE 102, Wesley Chapel, FL 33544, and 16703 Early Riser Ave Suite 264 & 266 Land O’Lakes, FL 34638, has a team of experienced professionals who can guide you through the process. Contact them at (813) 513-9846 to discuss your mortgage needs.