So in this article, we want to share this survey with you, and give you some insight into why Tampa is ranked the 2nd best city to own investment property.
Criteria for GOBankingRates.com Survey
In September of this year (2016), GOBankingRates.com released the findings of their survey of 61 of the 100 most populous cities in the U.S. The purpose of the survey was to determine the best and worst cities for owning rental property.
GOBankingRates.com evaluated four main factors:
- Employment growth: Year-over-year percent change in the city’s number of employed people.
- Population growth: Year-over-year percent change in the city’s population.
- Increase in home values: Year-over-year percent change in the city’s median home value.
- Years to pay off property: Number of years it would take for rental income to pay off the median home value.
Tampa’s Survey Results
Here are the results of the GOBankingRates.com survey of Tampa:
- Employment growth: 3.5%
- Population growth: 2.51%
- Increase in home values: 11.6%
- Years to pay off single-family home: 9.66
GOBankingRates.com concluded that Tampa is one of the hottest real estate markets today, as reflected by the results of the survey.
Also in the analysis, readers should note that Tampa’s median home value is below the national median, though prices are rising at a healthy pace. This, along with a median rent of $1,400, enables real estate investors to more quickly pay off investment properties with rental proceeds.
Tampa’s Population Growth
To have success investing in real estate, investors must first choose a state and city where people want to rent a home.
All the conditions for renters are right in Florida, as people have been flocking to the sunshine state in droves. As of late 2014, Florida passed New York to become the 3rd most populous state behind Texas and California.
Tampa, as a result, has experienced continual population grown in a manner that is advantageous to the city, and metro Tampa Bay.
Today, therefore, Tampa has the 2nd largest economy in Florida, while also maintaining a high quality of life.
Affordable Homes in Tampa
The inventory of affordable homes is another factor in making Tampa a desirable location for real estate investing.
In part, foreclosures over the past few years have resulted in an abundance of affordable homes. These homes make great flips, ranking Tampa a top 5 U.S. city for Flips in 2015. And, they are perfect as rental properties.
Tampa’s Rising Employment
Tampa’s job growth is helping fuel the demand for rental homes, as new residents come to the area for good jobs.
According to a 2014 study by Wallet Hub, Tampa Bay was the 3rd best city in the U.S. to find a job. Tampa Bay was also ranked the 2nd largest Florida economy in 2015, adding 38,800 new jobs in January 2016 alone.
As a growing and prosperous city, Tampa has begun a $1 billion dollar revitalization plan that will continue to help the city grow, while providing residents an improved quality of life.
In 2014, Jeff Vinik announced his plan for the city, which includes three million square feet of development along the city’s waterfront. The redevelopment will be accomplished in phases over 10 years, and includes an urban medical school, corporate headquarters, condos, hotels, meeting spaces, shops, and restaurants.
Foreign Real Estate Investment in Tampa
Tampa’s hot real estate market is gaining in popularity all over the world, as increasing numbers of foreign investors buy properties in Tampa Bay.
In the 12 months from April 2015 to March 2016, foreign real estate investors purchased $102.6 billion of U.S. real estate.
The year prior to this, in 2014, Florida was the #1 place for international investors to buy real estate in the United States, according to a report from the National Association of REALTORS, which also ranked Tampa as one of the top cities.
Graystone Investment Group
Graystone Investment Group is an experienced Investment Group, wholesaling single-family and multifamily investment properties in metro Tampa Bay.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.