Tampa Bay among hottest housing markets
April 13, 2021
In 2020, existing home sales reached their highest level since 2006 as more Americans sought larger living spaces as they adopted work-from-home policies in the wake of the coronavirus pandemic.
During the peak, most markets saw housing costs increase as much as 10%. The four-county Tampa Bay market experienced an 8.8% increase, which was below the national average of 12.9%, while competitive market Austin saw one of the largest increases at 10.5% or $35,100. Despite this increase, Tampa Bay remains among the more affordable markets compared to its competitive markets.
And speaking of Austin and Tampa, these two markets, along with other Sunbelt cities, topped Zillow’s 2021 Hottest Housing Market report. Austin topped the list, followed by Phoenix, Nashville, and Tampa at number four. According to a panel of economists and real estate experts, this lineup of sunny and relatively affordable metro areas are most likely to outperform the nation in home value growth while expensive coastal markets like New York, San Francisco and Los Angeles are most likely to underperform.
The Tampa market is also expected to see a consistent influx of new residents through 2021. According to a recent market report from commercial real estate research firm Marcus & Millchap, net migration in the Tampa Bay area in 2021 is estimated to top 27,600 new residents. This population growth will bolster demand for the wide range of rentals being added to the inventory this year.