MARKETS & TRENDS
HOT MARKET
Market Spotlight: Tampa BayArea
TAMPA, ST. PETERSBURG, AND CLEARWATER, FLORIDA SHOW STRONG FUNDAMENTALS WITH SHORT-TERM CHALLENGES
by Fred Heigold with RentRange® - A leading provider of market data and analytics for the single-family rental (SFR) housing industry
he Tampa-St. Petersburg-Clear- water, FL Metropolitan Statis-
T
and 2019 (a 1.2 percent increase) and had the 42nd largest five-year increase with nearly 270,000 new residents (a 9.1 percent gain). This strong increase in population has helped increase the demand for housing. ECONOMY& JOB MARKET The Tampa MSA economy is the 24th largest in the U.S. by GDP. The market GDP has surged nearly 3 percent per year between 2013 and 2018. Higher wage jobs in the finan - cial, professional services, education and healthcare sectors have been steadily increasing over the past 20 years. Companies operating here enjoy low labor costs, favorable corporate tax policies, no personal
income tax, and stable, pro-business leadership. Tampa Bay is home to 20 cor- porate headquarters with over $1 billion in annual revenue, eight of which are Fortune 1000 companies. Nearly one in four business and information services firms based in Florida are located here. According to the BLS MSA-level Employment Report, the Tampa MSA is still down -7.2 percent (101,200 jobs) between February and July 2020, the market has reclaimed about one-third of the total jobs lost from the lows in April. Some job in- dustries have bounced back quickly, but data as of July represents a set- back of nearly all jobs gained over the last three years.
tical Area (Tampa MSA) has been a high-performing market and a favorite amongst investors since the last recession. It’s been hot in terms of population, job growth, rental, and price appreciation over the last five years. However, rolling COVID-19 concerns, economic shocks, and unpredictable government stimulus have changed the dynamics of the real estate market. POPULATION GROWTH The 2019 Census/ACS data shows the Tampa metro is the 18th largest MSA in the U.S. with nearly 3.2 mil- lion residents. The metro area added 40,000 residents between 2018
Job Industries in the Tampa MSA through July 2020 are as follows.
JULY 2020 EMPLOYMENT
CHG VS FEB 2020 HIGH
PERCENT CHG VS FEB 2020 HIGH 5 YEAR CHANGE
5 YEAR % CHANGE
INDUSTRY GROUP
SHARE OF JOBS
Trade, Transportation, and Utilities Education and Health Services Professional and Business Services
242,300 212,100 236,300 147,500 133,400 120,700 68,300 83,700 43,200 23,800
18.9% 16.1% 15.9% 13.4% 11.0%
(12,000) (15,800) (14,600) (15,200) (32,600) (3,000) (2,400)
-4.72% -6.93% -5.82% -9.34% -19.64% -2.43% -3.39% 1.70% -11.11% -6.30%
5,700
2.41% 10.70% 8.10% 2.64% -7.23% 15.50% 8.93% 28.97% 0.47% -8.46% -25.00%
20,500 17,700
Government
3,800
Leisure and Hospitality
(10,400)
8.2% 5.4% 4.8% 3.8% 2.4% 0.2%
16,200
Financial Activities
5,600
Manufacturing Construction Other Services
1,400
18,800
(5,400) (1,600)
200
(2,200)
Information
300
—
0.00%
(100)
Mining and Logging
TOTALS
1,311,600
(101,200)
75,800
86 | think realty magazine :: november 2020
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