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Why The Tampa Bay Housing Market Remains Strong Despite The Pandemic
Dated: November 9 2020
Why the Tampa Bay Housing Market Remains Strong Despite the COVID-19 Pandemic
The Pinellas County and Greater Tampa Bay Housing Markets have remained strong throughout 2020, despite the COVID-19 Pandemic and historically low housing inventory. But what’s driving that trend and is it sustainable?
Read below for a list of reasons why the Tampa Bay Housing Market has been able to hold its own during the Pandemic, an election year, a busy hurricane season and so much more:
The Strong Job Market- Despite a temporary setback from the COVID-19 shutdown, unemployment rates are lower in our area than what was initially expected. As of September 30, 2020,Pinellas County reported an unemployment rate of just 5.9% vs 7.9% nationwide.
We Have a Business-Friendly Economy- Tampa Bay and Pinellas are known for their business-friendly atmosphere. With employers and employees working remotely more than ever, more businesses and remote employees will be drawn to areas like St Pete and Tampa, which boast great weather, no state income taxes, affordable housing options, and a growing workforce. According to this article from St Pete Catalyst, “the Tampa-St. Petersburg area has ranked 6th among 80 communities nationwide as a market to watch for overall real estate prospects, and fifth for homebuilding prospects.”
Florida Sunshine is Calling to Out-Of-State Buyers More Than Ever- After months of COVID-19 lockdowns and restrictions, residents of states like New York and Washington, DC are craving more living space and fresh air while abandoning sky high rent and home prices. “When the pandemic hit the U.S. in March, remote workers started leaving New York City and its ultra-expensive housing in search of wide-open spaces, sunshine and affordable homes — all of which you can find in Florida, with the bonus of no state income tax. The trend has only intensified as the pandemic continues and people feel more certain of their remote work and school plans,” according to this article from the Commercial Observer regarding our commercial and residential real estate market.
There’s a Surge of Young Professionals Entering the Housing Market Now- Around the country, let alone in Florida, exceptionally low mortgage interest rates and the need for more space is creating more demand for housing than ever among our younger workforce. According to Odeta Kushi, the Deputy Chief Economist at First American, the home-buying population is growing and there’s no slowdown in sight- “You have to remember that we were seeing this demographic demand for home buying even preceding this economic decline. You have the largest generation in U.S. history that’s aging into their prime home buying years and they were looking to buy homes even preceding this crisis. Now, of course, the low mortgage rates are making it a little bit more enticing and we’re seeing a boost in demand.”
The Beach is a Highly Desirable, Limited Resource- Living near the beach is as enticing as ever right now and will likely remain that way post-Pandemic. It’s easy to forget that some of the most beautiful beaches in the world are located in Pinellas County (think Pass-a-Grille Beach, St Pete Beach, Clearwater Beach, Honeymoon Island, the list goes on and on). We’re running out of land for new housing developments in Pinellas and as the population grows, and housing inventory remains low, prices will keep climbing as people relocate to live near our state’s most precious natural resource. It’s simple supply and demand and unfortunately, we can’t really make anymore coastline as space runs out.
Hopefully the information above will reassure our readers when it comes to buying and selling real estate in the Pinellas County and Greater Tampa Bay housing markets. Like any investment, real estate is one that needs to be managed but can pay off in the long run if you buy in the right areas. As far as the Tampa Bay housing market goes, it’s continued to prove itself as a worthy investment and we don’t see a slowdown in the foreseeable future at this point.
If you have questions about buying or selling a home in Pinellas County or the Greater Tampa Bay area, please reach out to us any time at The Sandy Hartmann Group (727) 400-3315. With over 30 years of local experience in our real estate market, we feel confident about the advice we provide to all of our clients when it comes to their real estate goals.
Andrea is the Managing Partner of The Sandy Hartmann Group. Andrea was born and raised in the Tampa Bay area and is a licensed Realtor with over 15 years of Marketing and Finance experience, holding ....