Tampa Multifamily Sector Continues Momentum to Post Strong Gains Into Third Quarter

By Dan Fischer | Published October 8, 2020 | My Tampa Bay Broker

As reported by Brian Alford of Costar Analytics 10/2/20

The Tampa area apartment sector has seen continued strong performance through a worldwide pandemic as rent growth is now the highest recorded in the last decade. While many areas of the country have reported worryingly high rental vacancy rates since the pandemic began, the average vacancy rate has barely moved in Tampa Bay, only rising 10 basis points.

As Brian Alford, Director of Market Analytics at Costar Group, notes, “In a further testament to the strength of recent demand, the tight fundamentals have been maintained during a heavy supply period. More than 4,000 units have completed over the first three quarters of the year, more than all of 2019”. There was worry that new development apartment units coming to market during the pandemic economy would lead to increased vacancy and subsequent lower collections, but the Tampa Bay market continues to outperform expectations.

Even with recession level unemployment rate of 7.6%, reported on August 31st in the state of Florida, apartments in Tampa Bay continue to show high renter demand. Local property managers have been reporting collections at 85-90% over the last few months, much better than we were expecting to see heading into the fall if you would have asked us back in April.

As we have seen from the beginning, many businesses that were already struggling pre-pandemic have now gone under, while strong businesses have continued to show strength in the market. The Tampa Bay market that has seen double digit population and investment growth over the last two decades has continued to grow. We will undoubtedly be relieved to see reduced unemployment in the state, as it will also signal a new economic cycle for property owners.