Tampa-St. Petersburg Multifamily Market Report

Softening rent metrics belie pickup in apartment demand. Tampa-St. Petersburg faces a misalignment of supply and demand in 2024, with a 20-year high completion total in the first quarter manifesting in rising vacancy and falling rents . Competition from new construction is lifting concession use, particularly among Class A and B apartments, subsequently contributing to discounted effective rents on new leases. While units with renters renewing leases logged some rent growth in the opening months of 2024, the pace is decelerating. Yet, more apartments were absorbed on net in just the first quarter, at nearly 2,700, than during 2022 and 2023 combined. This substantial turnaround in demand suggests rent growth may re-enter positive territory when development moderates after 2024.