Expect more new apartments across Tampa Bay
Roughly 8,817 new apartment units are expected to be completed across Tampa Bay this year, according to a new report.
- Context: In 2020, that number was 4,575.
Why it matters: A housing shortage in the U.S. has contributed to the rising cost of both renting and buying.
What's happening: Two major Florida metros (Miami and Orlando) are among the top 20 areas where roughly 41% of U.S. renters live, per the report by RentCafe, which analyzed data from real estate intelligence service Yardi Matrix.
- Tampa sits at 22.
Zoom out: A historic surge in new apartment supply — 1.2 million units were completed during the pandemic — helped slow rent growth nationwide.
The big picture: Nearly three-fourths of renters say they're renting in an area where they couldn't afford to buy, according to a new survey from RealPage, a real estate analytics and software company.
Yes, but: Around 89% of the U.S. units completed from 2020 through 2022 are high-end, per the report, and not the type of affordable apartments many renters want.
What they're saying: There's a difference between renting by choice versus out of necessity, south St. Pete renter Rachel Van Kirk tells Axios.
- She — a therapist with her master's — and her fiancé say they would buy a house tomorrow if they could afford a downpayment. They'd love more space and a yard for their dogs.
- Coupled with mortgage rates, it'll take them another 2-3 years to save for a house in St. Pete.
Alan Jardine has lived and rented in Clearwater for 16 years. Typical rents there surpass his budget by about $500 a month.
- He and his wife are moving to Oklahoma, where they already own property.
What's next: Across the U.S., 1 million rental units are slated for completion through 2025, but higher costs and other headwinds could slow developers' pace in future years.
- "Tightening of bank lending standards — combined with rising costs of construction materials, labor and land — has made new projects harder to pencil," senior analyst Doug Ressler at Yardi Matrix says in the report.
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