Tampa-St. Petersburg Multifamily Market Report

Household formation, not in-migration, driving demand now. As post-pandemic Sun Belt migration has slowed, conditions in Tampa’s apartment market are normalizing. While household formation of 0.9 percent in the year ended in March remained above the national rate of 0.5 percent, population growth was just 0.2 percent, slightly below the national level. This divergence suggests demand is being driven by more smaller households than by overall growth. Renewed hiring momentum, however, may support improved in-migration. As well, the volume of units under construction in the first quarter fell to its lowest level since early 2021, pointing to supply pressure continually easing.