Why Tampa will be 2022's Hottest Market

Are you looking to invest in a market with high appreciation and growth? Look no further as Zillow has named Tampa, Florida as the #1 hottest market for 2021. In this video, I'll cover why Tampa is a hot market from an investor and resident perspective.

Transcription

Ariel Herrera 0:00

Zillow announced that Tampa Florida is going to be the hottest market in 2022. I'm going to give you the reasons why not only from an investor perspective, but also as a Tampa resident. My name is Ariel Herrera with the analytics area channel where we bridge the gap between real estate and technology. If you want to get insights into the real estate market with data driven facts, then please subscribe to this channel as well. If you want to hear more things about relevant news topics, then please like this video. Alright, let's get started. Right now I'm on Zillow is research page where they put a lot of useful data on the markets and how their perspective is on it based on their datasets. So here they have that sample will be 2020 two's hottest market, as the Sunbelt has dominated Dillos list of housing markets for two years in a row, Sunbelt are those states within the United States that make like a smile so the southern like Texas, as well as Louisiana, Alabama, Florida and more. Now, on this article, Zillow has several reasons why Tampa is primed for more growth. So I'm going to go through these and give you my perspective as well stick to the end, because I'm going to give you some tips from here that actually Zillow doesn't mention. So first off price growth. You have seen that Tampa has been in a lot of news as of late for price growth and appreciation. Now, although we don't expect for this appreciation to be consistent year over year, it is a really big explosion that it wouldn't be consistent. It has really grown since COVID, especially. So I moved to Tampa, Florida in June of 2022, where I bought a 2018 home. So practically new three bed, two bath gated community huge backyard, inside will NY and a paid 271 which I could not have done in New Jersey for the same type of property. So 270 1k. And that same exact model in the same neighborhood has sold for 370 as of last week. So if only a year and a half, I've had about 100k in equity into the home. So it just shows how it's not just you know, talk that's online. But in reality, a lot of people who have had properties in Tampa have seen price growth. Now second, his inventory and velocity. If you go up and down I 75 which is the major highways connecting Tampa to some of the other cities like Sarasota, Bradenton, and so on. You'll see on i 75, there's a ton of signs for new builds. And you may be thinking, Is it possible that Tampa's building way too much? Actually, no. So you have a lot of people who are coming from the northeast, from Michigan, from Ohio, from Chicago to who they want to be able to sell their homes, which up there are pretty pricey. And they're able to come down to Florida, especially Tampa, and almost put cash offers so they continuously are able to afford these new homes. And if you want to go to actually buy a home today, in Tampa from a new build, it usually takes about three months to even start the process of buying a lot and selecting the home just because of the high demand it simply cannot keep up enough. And quick tip if you go on Zillow, and you see oh wow houses right now brand new in Tampa, starting at 350. That's usually just for the build itself and does not include the lot, which is usually an extra 60k. So just be aware of that that's an interest of yours to get a new build. Now going into the next piece job market and building. One of the biggest concerns why people would not move to Florida until they retired was because Florida had basically low paying jobs, it wouldn't be sustainable enough to raise a family on. Now this is no longer true, especially after COVID where a lot of white collar jobs have gone fully remote. No longer do you have to spend the time and money to commute into a major city. But you can take your job and pretty much move anywhere with it. And not only has Tampa seen a huge growth and white collar jobs, like programmers like me, but Tampa has also had a lot of new employers either planned or already moved their facilities over into Tampa as well as Miami and Orlando. A lot of financial companies have committed to moving more of their employees and grow more their offices within these areas, including Kathy Woods is really big in the financial market space.

Next Scylla focuses on demographics, which is actually my favorite piece here. So Tampa specifically it has a wide range of people. So you have those who are military families coming from MacDill Air Force Base, you have retirees mostly situated in St. Pete Bradenton, and Palmetto. Ellington. And then you also have a lot of younger people, a lot of them are college students at USF University of Tampa, and then just a general population of 20s 30s, living inside the city. So you really have a diverse area. And not only when it comes to the age groups that are mentioned, but also ethnicity wise, and income base, which is a real pleasure, especially someone like me coming from New Jersey, who, which is supposed to be the most diverse state in the entire country. It is very diverse. But for those who have lived in New Jersey or know about it, it's very pocketed. So you have like Edison Indians, and you have Patterson Dominicans, county, mostly Caucasian, like it's very segmented when it comes to races, and then also for income. So you see, like Hoboken, Jersey City, people aren't going to be living there who have incomes of less than 50k a year, probably not even 75k a year. So it's very disparate in terms of that. And when it comes to wanting to live in a community that's very open and inclusive of all, Tampa is one of the top that's there for it in the country. Now going on to risks. So of course, always good to think about what are the possible negatives of the area, something that's not mentioned here is that Tampa is susceptible to hurricanes, yet, it hasn't had one that's stricken as big as say, like Sandy in New Jersey, a lot of the houses now as well, you don't need to evacuate, especially if you're on the right side of I 75. And you're in one of those new construction builds, as well. It's important to understand when you're purchasing within Tampa area if you're close to a flood zone or not. Now when it comes to the coastal area, there is a real big benefit there. As I just mentioned before, when it comes to supply and demand, the thought could always be is there overdevelopment in this area? Well, in fact, there's only so much land in Tampa, so it's half of the city surrounded by a body of water, which is the Hillsborough River. And then on top of that Tampa has the two main beach areas, which is Clearwater and St. Pete, which you can only build so much in these areas. st P also is having a huge boom, especially in their downtown area, which is really primed going from now till 2027 To have a lot of growth. Alright, so this is what Zillow says are the top reasons Tampa is going to be the hottest market. But what are some of the reasons for someone that is actually a resident of Tampa. So first is affordability. Even though I was making a great salary in New York City working a job there, I couldn't even afford to live 40 minutes close to my job. That's how crazy it is to live in some of these cities. Whereas now I'm able to live in Tampa and go down the street, get a drink for $7, which is amazing. And I'm able to get to the beaches and under 30 minutes and go see the Bucs play in under 10 minutes. So it's really really affordable. And everything is centrally located. The second part Tampa is really great is access. So there's a lot of highways and we also have an airport so you can get to and from places like Miami or kala Jacksonville Orlando relatively quickly. Orlando, you can actually get there an hour and 15 If you leave early enough where I for is and backed up. And one of the things that really made me decide on Tampa sales between Tampa and Austin to change my residents is that Tampa is really easy to get to and from, say New Jersey, New York, you could get a flight for about $8 round trip. And if you have a united card, you can have free baggage as well, which makes it even easier. Now going to places like Austin, it was going to cost on average from what I looked at about 250 to $300. Every time I want to travel back to my home state, which I wasn't willing to do. And when I was looking at states and cities that were really, really cheap, I realized it was going to be even harder to be able to get back to major cities like New York. So take that in mind. Whether you're an investor or looking to live in Tampa to understand how accessible is going to be to maybe a city or state you'll have to be going back to now one of the number one reasons that Tampa is primed to be the hottest market and it's a great area. It's because you can do so many strategies and it there is a reason why for decades on end, people would come to retire in Tampa as well as other areas within the Florida region. It's because it has great weather and is the ideal place where someone could relax and live a very fruitful life.

So in that case, you have a big surge in short term rentals where you can make get a house and either rent it out on Airbnb, or you could even do rent by the room since you have a lot of people who want to be snowbirds and maybe just work or just live pleasurably within the winter months here. then you could also make it a long term rental, so renting it to a tenant for eight months or more, maybe even two years. And you could have some great tenants like military families since MacDill. Air Force is close by. Those are my reasons why I agree with Villa Tampa is not only going to be in the top 10 markets have been 2022 Possibly the hottest market of them all. Now if you have any questions about Tampa, the area maybe you're looking to buy as well please feel free to reach out to me as I'm also an agent and can direct you to other agents if need be, as well. I love talking Tampa as well as different real estate strategies. So please feel free to reach out to me directly on my website. Alright, and if you haven't already subscribed, please do. Thanks.