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It is not news that the population of Tampa Bay is growing. The state of Florida welcomes thousands of new residents each week, and the Gulf Coast region, where Tampa Bay is located, is one of the most sought after. What is surprising, however, is that the influx of new residents to Tampa is now being fueled by a new audience: South Florida residents!
Traditionally, new residents in Tampa Bay have come from northern US states like New York, for example. The region also welcomes new residents from central Florida cities and the so-called “Greater Orlando”. However, the city of Miami is now at the top of rankings among the destinations that lose the most residents to Tampa Bay.
Why does the Tampa region attract South Florida residents?
There are two main reasons that lead residents of South Florida, and especially Miami, to move to the Tampa Bay region: 1 – Properties with more attractive prices and 2 – Quality of life.
Indeed, home prices in Tampa, despite tracking the statewide housing boom, still remain considerably more attractive than those seen in central and south Florida. The average listing price for homes for sale in Hillsborough County is $359,000, according to Realtor.com. In Miami-Dade County, it’s $450,000.
The quality of life also influences the decision. The Tampa region does not face major traffic jams like Miami and Fort Lauderdale. The houses are larger and the regions less densely populated, with lots of green space, excellent schools and a family atmosphere.
Tampa Bay grows faster than South Florida
The Tampa Bay metropolitan area – which includes St. Petersburg, Clearwater and Tampa – has grown by more than 14% in a decade, according to the Census Bureau. The Miami region – which includes Fort Lauderdale and West Palm Beach – grew 10%.
Tampa Bay has been rated as one of the top five emerging real estate markets in the country in 2022 by the Urban Land Institute, a real estate group. The buoyant market here was also recognized as the sixth largest in the country and the best in Florida, according to real estate agency CommercialCafe.
Tampa has also been rated by Forbes as the emerging tech city in the country this year, which Smales said is raising the profile of the area.
South Florida – from Palm Beach to Miami – has had the state’s three most populous counties for decades. But the latest increase in people in Tampa Bay could push Hillsborough County, which is home to the city of Tampa, to one of the best counties in coming years, according to researchers at the University of Florida.
Hillsborough County had 1.45 million residents, according to the 2020 census, and Palm Beach County, 1.49 million. Both counties have grown rapidly over the past decade, Rayer said, and it’s only a matter of time before Hillsborough overtakes Palm Beach.
Geographical boundaries in Tampa Bay make an excellent opportunity for investors
Another factor that makes Tampa Bay interesting for investors is geographic boundaries. In this respect, the region bears similarities to Miami.
Like Miami, the region is bordered by the ocean, which creates a drag on growth. Land shortages imply pressure on land and real estate prices. It’s different from central Florida, which can grow anywhere.
Investors know that a region that has geographic limits to grow offers promising valuation in land and real estate, as the inventory is, of course, limited. Considering the high demand, which shows no signs of falling, the consequence cannot be anything other than pressure on property prices.
Miami, in this sense, has two major limitations: 1 – To the east the Atlantic Ocean and 2 – to the west the Everglades. No wonder prices in “Magic City” have exploded in recent years.
Tampa Bay still bears Miami the resemblance of being a coastal region and offering all the lifestyle by the sea. Nothing prevents the region from developing the same glamor and hype seen on the east coast. The city has yet another huge advantage over Miami, it is only an hour away from Orlando, one of the main tourist destinations in the world.
Prices are still attractive, but remain high
High demand exerts strong pressure on prices. The average resale price in Tampa Bay recently surpassed the all-time milestone of $300,000 and it looks like the price will continue to rise.
Like all over Florida, the real estate market faces a strong imbalance between supply and demand. While demand for residential properties is high, inventory remains low. Construction companies are racing against time to meet the high demand, but projects take time to be approved and delivered.
“There is a lack of luxury developments in the region, especially condos in the same formats of those offered in Miami and Fort Lauderdale,” explains Heloisa Arazi, broker and owner of real estate AMG International Relty in Florida. “Today, basically, the main luxury condominium is Marina Pointe in Tampa Bay, which is almost sold out,” she adds.
Discover Marina Pointe in Tampa Bay
Inspired by the sleek, aerodynamic curves of a luxury yacht, Marina Pointe’s innovative architecture and elegant, well-appointed interiors are designed to maximize the panoramic view of the water. Starting at $800K, there are a variety of floor plan options in our tower, as well as Penthouse and Harbor Home options that are sure to sell quickly.
Marina Pointe is located in the Tampa Bay region and has been attracting Americans and foreign investors.
Learn more about Marina Pointe: https://marinapointe.com/
About AMG International Realty
AMG International Realty is a global real estate specialist in Florida. If you want to learn more about the opportunities in the Florida real estate market, get in touch right now and talk to me by WhatsApp: +1 305 318 6968 (Heloisa Arazi).