Tampa Real Estate Investing Market Outlook

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Contributor, Benzinga
July 1, 2025

Investors have long looked to the Sunshine State for building wealth through real estate, and the Tampa real estate investing market has shone as one of the brightest over the last decade. 

With continued population growth and a diverse economy driving housing demand, the Tampa market remains one of the hottest in the nation for real estate investors. “Emerging Trends in Real Estate,” the real estate industry’s leading annual report from PwC and the Urban Land Institute (ULI), recently ranked the Tampa-St. Petersburg metropolitan area on Florida’s west-central coast as the fourth top location to watch in 2025.

If you’re considering buying into the area, here’s a look at the Tampa real estate investing market to help you decide.

Current Tampa Market Overview in 2025

  • Median home price: $459,738 as of May 2025, a 0.6% decrease year-over-year
  • Average home value: $386,556, down 3.8% over the past year
  • Median listing price: $480,000 in June 2025
  • Inventory: 6,681 active listings as of June 6, 2025
  • Median days to pending: 33 days
  • Average rent: $2,195 per month, 4.52% higher than the national average
  • Median rent: Approximately $2,134 per month as of May 2025
  • Year-over-year rent increase: 4.2% as of May 2025

Investment Opportunities

Although the region remains one of the hottest housing markets in the U.S., Tampa Bay real estate market trends show housing prices cooling. The average cost of a single-family home in the Tampa-St. Petersburg metropolitan area has fallen, providing an opportunity for investors looking to pick up rental properties, albeit in a competitive market.

The Tampa-St. Petersburg market jumped 14 spots on the ULI’s ranking of housing markets to watch in 2025. So if you’re new to real estate investing or a seasoned pro, the Tampa real estate market, 2025 to 2026, is seen as a dynamic market with the potential for high returns.

Here’s why: The Tampa real estate market offers a diversity of property types for investing, including historic and new single-family homes, multi-family units, and vacation rentals (short-term rentals). Opportunities abound in the Tampa real estate investing market because rental prices are rising while home prices are falling.

While many people are drawn to downtown Tampa and St. Petersburg, established and emerging neighborhoods throughout Hillsborough and Pinellas counties and other nearby counties are attracting new residents seeking Florida’s sun and fun.

Some of the top neighborhoods for real estate investing include:

  • Hillsborough: Seminole Heights, Hyde Park, South Tampa, Ybor City, West Chase, Carrollwood, New Tampa, Fish Hawk, Keystone, Lutz, Pebble Creek, Riverview and Ruskin
  • Pinellas: Historic Kenwood, Grand Central District, Greater Woodlawn, the EDGE District, Snell Isle, Clearwater, Dunedin, Gulfport, Palm Harbor, Ozona and Tarpon Springs

Cities and neighborhoods in the neighboring Tampa Bay area counties of Pasco, Polk, Manatee, Sarasota and Hernando are also growing, offering opportunities for investing.

Economic and Demographic Factors

The Tampa real estate market forecast looks bright because rental properties remain in high demand as retirees, young professionals and remote workers flood into the region.

The Tampa metro area has been growing steadily since 1950, and has risen better than 1% in each of the last four years to more than 3 million residents. People flock to Tampa and the surrounding area because of its warm weather, robust economy, vibrant cultural scene, relatively low cost of living and lack of a state income tax.

Population growth remains strong because of the diverse economy of the Tampa-St. Petersburg metropolitan region. From January 2024 to January 2025, the area gained the third-highest number of private-sector jobs compared to any other metropolitan area.

Tourism is its cornerstone, but Tampa boasts a strong presence from several other industries, including financial services, healthcare and education. Recent years have seen the region grow as a technology hub. The area also benefits from a large military presence. MacDill Air Force Base is the largest employer in the city of Tampa.

This economic diversity gives the Tampa Bay region a resiliency that can help it resist economic downturns. That stability can reduce the risk of vacancies and lead to more consistent rental income.

Risks and Considerations

While you can find ample opportunities in the real estate market in Tampa, you also may face risks that you must consider: requirements and regulations on condominiums and short-term rentals, rising insurance costs, and the usual fluctuations in the real estate market.

Home Insurance

While no longer considered a crisis, homeowners’ insurance in the Tampa area can be a drag on owning a home. On average, Floridians pay the second-highest rate for insurance at $5,488 per year — $3,231 more than the national average. In Tampa, the average rate is $5,165 per year. Those rates are driven by the costs of damage from hurricanes, flooding and sinkholes, along with the cost of litigation.

Regulations

New requirements for condo homeowners associations (HOA) to do inspections and maintain a reserve drove HOA fees up double digits in 2023 and 2024. New legislation expected to be signed by Governor Ron DeSantis in July may offer condo owners some relief.

As a real estate investor, you must also stay up to date on local and state regulations of short-term rentals. Find out whether they might be banned in an area, or if you must obtain a license or limit the number of occupants.

Market Fluctuations

Tampa’s economy is strong and has shown remarkable resiliency. However, real estate is always subject to economic factors and market conditions such as changes in interest rates and buyer demand, an economic downturn, or a drop in population and job growth. Consider strategies to mitigate these risks that can impact property values and rental income.

Consider the Tampa Real Estate Investing Market

Job and population growth paired with fun and sunshine continue to be a winning formula for investing in the Tampa Bay region’s real estate market. With once-soaring home prices dropping and rents rising, many real estate watchers say it is prime time for investors to buy in the Tampa area. 

Now that you know more about this dynamic real estate market in West Central Florida, consider whether you want to invest in real estate in Tampa.  

Frequently Asked Questions

Q

Is now a good time to buy a house in Tampa, Florida?

A

Florida’s housing market has cooled considerably from the double-digit appreciation seen when home buying exploded in 2019 and 2020, with many metro areas witnessing price drops. Many real estate watchers are split on whether the market is balancing or tilting in favor of buyers, but they agree that now is a good time to buy in the Tampa market.

Q

Are housing prices dropping in Tampa?

A

Housing prices in the Tampa market continued to drop through the first part of 2025, ranking third in the nation for the number of homes on the market with dropping prices. Falling home prices are driven by oversupply from building in 2020 and 2021 and from buyers sticking to the sidelines with interest rates hovering around 7%.

Q

Are Florida home prices tanking?

A

The once-sizzling home market in Florida began cooling in 2024, and that trend continued into 2025, with Florida holding seven of the top 10 metro areas for price drops in May. However, real estate professionals who note home prices were down 1.8% to 3.8% year-over-year in May say prices aren’t crashing but stabilizing.

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