Tampa Bay, FL

Market Update

The Tampa Bay market continues to experience robust growth, with a population of approximately 3.42 million as of the fourth quarter of 2026, reflecting a year-over-year increase of 2.44%. This upward trend in population is supported by a net migration of 43,362 residents, contributing to a growing demand for housing. The median household income stands at $78,275, while the unemployment rate is relatively low at 4.3%. With an employment figure of nearly 1.7 million and an average weekly wage of $1,400, the economic backdrop remains favorable for housing demand, particularly among renters, who comprise 32% of the population.

In the multifamily sector, year-over-year rent growth is recorded at 4.3%, with the median gross rent at $1,776. This growth is indicative of a strengthening rental market, although the HUD Fair Market Rent for a two-bedroom unit is slightly lower at $1,771, suggesting that affordability may be a concern for some renters. The asking rents for various unit types, including $1,985 for two-bedroom apartments, further illustrate the competitive landscape. The current rent dynamics indicate a momentum that could continue to attract both tenants and investors, despite the pressures of rising costs.

Capital markets in Tampa Bay have shown resilience, with multifamily cap rates at 7.15%, which is about 11 basis points higher than the national median of 7.04%. Over the trailing 24 months, there have been 545 transactions totaling approximately $662 million, with a median price per unit of $187,500, reflecting a price decline of about 6% compared to the 50-market median. This data suggests a stable investment environment, although the slight divergence in pricing may warrant careful consideration for potential investors. As reported by CBRE Research, the overall market conditions indicate a continued interest in multifamily assets, supported by demographic trends and economic fundamentals.