Tampa Bay’s housing market, which has been hit with obstacles ranging from hurricanes to high interest rates in the past couple of years, remains strong and is poised to be one the tops in the nation next year. A report, titled Emerging Trends in Real Estate 2025, ranked Tampa-St. Petersburg as No. 4 on its list of the top 10 markets to watch next year. That is up 14 spots from last year. According to the report, Tampa-St. Petersburg’s housing market is worth watching because of continued population growth; the area’s positive business climate; and job growth forecast at 2.3 times the nation’s five-year forecast.
These factors, the report’s authors write, “set the stage for continued demand for Tampa real estate.”
But the report came with warning signs for the area as well.
Chief among those is the cost of homeowners’ insurance in Tampa-St. Petersburg, which ranks among the 10 highest nationally, and home prices, which have risen 66% in the past four years. Because of this, “much of Tampa’s previous housing affordability has eroded, with little hope of returning in the near term.”
“On the bright side,” the authors add, “costs of doing business remain below national averages (95% of the national rate, per Moody’s), with costs considerably lower than U.S. averages for energy, state, and local taxes, and office rent.”
Source: Business Observer Florida
The 30-Year
Fixed-Rate Mortgage
Inches Down
The 30-year fixed-rate mortgage moved down this week, but not by much. Rates have been relatively flat over the last few weeks as the market waits for more clarity on specific economic policies. Potential homebuyers are also waiting on the sidelines, causing demand to be lackluster. Despite the low sales activity, inventory has only modestly improved and remains dramatically undersupplied.
