‘Households are definitely feeling pressure’: Tampa leads nation in 2021 rent growth

TAMPA, Fla. — The Tampa Bay area is one of the hottest real estate markets in the country, but renters are paying a hefty price.

A recent report from CoStar shows Tampa has experienced 25 percent rent growth year-over-year, with 2021 being no different.

"Tampa has definitely been the leader for rent growth so far in 2021, and we’re anticipating that it’s going to continue,” said Jay Lybik, Costar National Director of Multifamily Analytics.

Lybik said it is a trend that started before the pandemic and continued through it.

“I think it was an acceleration of trends that we were seeing pre-pandemic,” said Lybik. “The movement of households from more expensive coastal markets and more expensive Midwest, Northeast markets to Tampa to take advantage of lower costs of housing, lower taxes, better quality of life, fantastic weather. I mean, Tampa has all those things going for it.”

Raymond Hendricks, real estate broker and owner of HD Real Estate Company in Tampa, said it’s a classic case of economics.

"Supply and demand. So, if there's a lower supply, there's more demand for it. Prices drive up,” said Hendricks.

A landlord as well, Hendricks said the booming market forced him to choose between charging as much as the market would allow or taking a more moderate approach. He said he chose the latter.

"I don't want to raise rents on people...because you know, people need an affordable place to live,” he said.

According to the Harvard Joint Center for Housing Studies, 25 percent of renters in Tampa, St. Petersburg, and Clearwater are putting more than 50 percent of their income toward housing.

Renters are feeling the squeeze.

“Households are paying more for gasoline. They're paying more for groceries. They're paying more for everyday necessities and living expenses, and we're seeing rent growth that is historically high also,” said Lybik. “So, households are definitely feeling pressure, financial pressure across the board."