Tampa Bay home buyers are headed to the suburbs for better deals
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Buyers are hard-pressed to find move-in ready houses under $350,000, or even $400,000, within 15-20 minutes of Tampa, says Tampa Bay real estate agent Kseniya Korneva.
Why it matters: Inventory and affordability issues are squeezing Tampa Bay buyers' budgets.
What's happening: Buyers typically have to choose between space or location to match their budget.
- First-time buyers who want space and a yard are pushed to the suburbs, and those set on urban living are looking at townhouses.
Driving the news: Tampa Bay is one of the hottest markets in the country, says Redfin senior economist Sheharyar Bokhari.
- With low inventory and high competition, buyers are settling down wherever their budget allows.
- "The cost will outweigh any amenity," he says.
New construction is booming, and, typically, each phase of a new-build community is priced higher than the last as builders try to beat surging construction costs and labor shortages, Korneva tells Axios.
- First-time buyers are also competing with short- and long-term rental investors who tend to pay all cash, Korneva says.
By the numbers: Tampa's median home price in April was $410,000, up 3% year-over-year, per Redfin.
- The median in Clearwater is also $410,000, but it's growing faster — up 9.3% year-over-year.
- Sarasota's was $495,000, down 8.3% since January.
- You'll find cheaper options in Brandon, Temple Terrace, Citrus Park and Land O'Lakes, which have median home values below Tampa.
Bottom line: Budget-conscious buyers will need to cast a wide net to find a Tampa Bay home in their budget.