Tampa Bay's housing market has yet to cool off in 2021

The hot housing market has yet to cool off in 2021, with record home value growth in January, according to Zillow’s latest Market Report.

What's next: Zillow economists expect national home values to grow 10.1% in the next year. Existing home sales are expected to reach 7 million nationally in 2021, 24.8% more than in 2020.

The big picture: Tampa Bay, one of Zillow’s 20 largest U.S. metro markets, is facing a few changes:

• The typical home value in January was $257,499, up 12.8% year-over-year and 1.6% since December.
• Typical rent is $1,589, up 6.6% year-over-year.
• For-sale inventory is down 26.4% compared to January 2020.

The most likely demand drivers, according to Zillow:

• A wave of millennials now entering their peak home-buying years.
• Mortgage rates are more affordable, even if slightly up. December’s historic low of 2.68% for a standard 30-year fixed rose to 2.74% in January.
• The "new normal" of work-from-home is making people reconsider where and how they live.

This story first appeared in the Axios Tampa Bay newsletter, designed to help readers get smarter, faster on the most consequential news unfolding in their own backyard.

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