While most cities across the country saw a break last month from price increases, Tampa’s metropolitan area experienced double-digit inflation of up to 11.2%. Hardly a change from the 11.3% high in May.
In July, the Tampa Bay area’s inflation was 4.7 percentage points higher than New York City. While local motorists saw gasoline costs fall by almost a third in the past two months, shelter costs continued to climb and are up by 13.6% from a year ago.
High earners have made cities in Florida and other Southern states less affordable. Researchers found that relatively smaller metros have become more appealing to move to. Tampa is among the top five metros with the highest net-inflow numbers in July.
Homebuyer income increased more than 15% over the past two years in four Florida cities due to the influx of out-of-state buyers. Locals would need a double-digit salary bump to buy a typical house, according to a report by Redfin.
“Buyers are stretched thin when it comes to affordability, and they are flocking to the lowest-priced homes on the market to get their foot in the door,” Zillow Senior Economist Nicole Bachaud said in a statement.
Affordability issues continue to push homeowners out and force them to rent. The shift from the housing market to the rental market has caused increased housing competition and higher rent. About 60% of renters reported their rent was raised within the last year, according to a survey from Freddie Mac. An estimated third of those who participated in the survey reported at least a 10% increase in rent. Potential homebuyers priced out of the market due to rising interest rates are now competing with current renters when looking for available properties.
Greater Tampa REALTORS® offers classes that explore the art of negotiation and will assist you in this competitive market. Check out our upcoming classes for the next professional development opportunity on negotiation. Please don’t hesitate to contact our Education Department if you need assistance finding the course that is right for you.
