Market Report
Tampa-St. Petersburg Multifamily Market Report
2025 Investment Forecast
Tampa-St. Petersburg Sustains Renter Demand,
Balanced by Rising Insurance Costs
Metro’s appeal for employers increases need for rentals. While net absorption will fall this year to half the 2024 metric amid decelerating population growth and rising living costs, the gain will still be near the 10-year average. This new demand, in combination with a pullback in completions, will help balance the vacancy rate and create minor gains in the average effective rent. Moreover, Tampa-St. Petersburg continues to attract businesses, providing new local job opportunities that will bolster economic activity. The staffing and talent firm Insight Global is one such relocation, as they are expected to lease 20,000 square feet in Midtown starting early 2025. Foot Locker has also moved their headquarters to St. Petersburg from New York City, encouraging some of their current employees to migrate as well. Living and operating costs that are still lower than in many northeastern metros, in addition to not having an income tax, enhance Tampa’s appeal for both relocating businesses and renters. This dynamic holds true for many professionals, even as the risk of natural disasters has raised the insurance burden for property owners.
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