Experts expect the real estate market to continue to be hot across the country in 2022. If their predictions prove to be true, Tampa, Florida will be the hottest of the 50 largest markets.
Why are real estate investors so bullish in Tampa?
Tampa real estate market
The real estate market saw unprecedented growth in 2021 due to low-interest rates, shifting demographics and limited inventory. Despite nationwide inflation, real estate investors expect these trends to mostly continue into 2022.
However, some of the top markets of 2021 are cooling off. This leaves room for Tampa to emerge as the new leader. Tampa had the fourth-fastest home value growth in 2021 but is likely to claim the top spot vacated by 2021’s top markets, Austin and Phoenix, in 2022.
Factors driving the market
Lack of supply continues to be a major driver of real estate prices. Fewer people are willing to sell and fewer homes are being built. Meanwhile, demand for homes continues to be high. Part of the reason for the increasing demand is that as the economy recovers, many markets are adding more jobs than housing units. This creates competition among the people taking those jobs to find a place to live. Tampa added 0.63 jobs per housing unit in 2021.
The mix of job seekers and retiring Baby Boomers moving to Tampa will likely continue to drive demand for housing in 2022. However, with mortgage interest rates expected to increase, wise investors may want to keep a careful eye on the market.