Tampa Bay Economic Growth; it’s looking good.
It’s well known that the housing market in the Tampa Bay area has done exceptionally well this year, with very high demand among buyers and prices rising. And the biggest challenge has been a lack of inventory in some of the hottest neighborhoods.
Why has the housing market done so well? One word: jobs. Throughout the year, the Tampa Bay area has been riding a wave of strong job growth. That’s made the city a magnet for newcomers relocating to Tampa in search of job opportunities.
And every indication is that this trend will continue into 2018. The job growth throughout 2017 in the Tampa-St. Petersburg metro area has been above average all year long. In fact, this is a trend in Central Florida overall. Tampa has joined Orlando in being among the top metro areas that are leading the U.S. when it comes to job growth.
From January to July, Tampa added 48,700 positions year-over-year. And professional and business services led the gains with 19,200 new jobs, followed by construction (6,900 positions).
That means a lot more people, including young families, will be drawn to Tampa for their next career move. And that means a lot of people who are in search of a home.
Florida is a leader in job creation
Florida has been outperforming the rest of the country when it comes to job growth. In September, the Sunshine State’s unemployment rate fell to 3.8 percent, the lowest since April 2007, before the national recession hit in September 2008.
Nationally, the unemployment rate in September was 4.2 percent. Even in August, Florida’s unemployment rate was lower, at 4.0 percent.
As Florida goes, so goes the Tampa-St. Petersburg area. Tampa Bay’s unemployment rate took a steep drop from summer into fall, going from 4 percent in August to 3.3 percent in September. In Hillsborough County, the jobless rate fell from 3.9 in August to 3.2 percent in September, and in Pinellas County, it was even lower, dropping from 3.7 percent to 3.1 percent.
Why is Florida doing so well? As Forbes magazine noted recently, “(T)he boom days are back in Florida with construction in full force and tourism at record levels,” and the state’s future outlook remains sunny.
While tourism is a major economic engine for the state, other sectors are also doing well. That includes a booming tech field in Tampa and Orlando, and vibrant healthcare/life sciences industries also thriving.
Other top industries include:
• Exporting and importing
• Aerospace and Aviation
• Homeland security
• and Information technology.
How is the job growth impacting Tampa Bay?
A diverse economy in Tampa Bay has helped to make the region a prime coastal market, both in Florida and nationally, for homes.
And the strong job growth may continue fueling strength in the housing market, shifting more and more newcomers to purchase a home rather than rent one. With a lot of new commercial development going on in the downtown and investor interest very high in the region, not surprisingly rents for a home or apartment are rising.
In August, the median rental price in Tampa was $1,149, but that figure is expected to go up as the area’s population keeps steadily expanding.
With mortgage interest rates still at historic lows, buyers have the ability to lock in an affordable monthly payment on a 30-year fixed rate. Unlike renters, they don’t face the prospect of rising costs in future years. That’s another reason why buying a home in Tampa Bay is likely to look more appealing than renting a home.
Tampa has been helped by creating jobs in solid professional fields like education and health services (6,600 new jobs created in the Tampa region so far this year), and trade, transportation, and utilities (4,000 new jobs).
In addition, massive construction projects in the downtown area like Water Street Tampa — one of the largest redevelopments in the city’s history — are also expected to add to the already fast-growing workforce.
In fact, following the project’s recent groundbreaking, that’s already started in the construction industry.
How is the construction industry impacting the economy?
More major construction projects are on the horizon. The Rays Major League Baseball team need a new stadium, for example. Hillsborough County Commissioner Ken Hagan just announced that a site near downtown Tampa has been acquired as the place where a new Rays stadium can be constructed. It would encompass roughly 14 acres in the Ybor City-Channel District area near downtown Tampa. The Rays’ current home stadium is Tropicana Field in St. Petersburg.
Hagan predicted the county could not only build a state of the art ballpark there but that this project would promote significant economic development in the future.
Tampa has also become a leader in job growth in another field: Earth-friendly green jobs. A new report by the website SmartAsset indicates that the average worker in the green economy sector gets paid 57 percent more than the average employee in other fields.
They also developed a list of the 10 best cities to find green jobs and the Tampa-St. Petersburg-Clearwater area made the top 10. The SmartAssets report noted that residents of the Tampa Bay area working in the green jobs field can make $75,000 on average.
Tampa Bay Economic Growth
The Tampa Bay area has a lot going for it right now. A strong economy is helping to create plenty of new jobs. And that includes in strong professional fields like health care and life sciences.
That’s encouraging more commercial development in downtown Tampa. There, old, run down commercial sectors are being replaced by brand-new, job-creating business developments.
The same thing is happening in the housing market. As Tampa continues creating new jobs at one of the fastest rates in the nation, the local population keeps expanding. And as the population grows, so does the need for housing.
One of the city’s top builders, Domain Homes, procures older, dilapidated houses in some of the city’s most appealing neighborhoods, and replaces them with brand new, move-in ready homes.
The neighborhoods that Domain Homes builds in include highly sought-after, established neighborhoods like South Tampa, West Tampa, North Hyde Park, the Heights, and St. Petersburg. These locations are close to the top-rated school districts, the downtown cultural amenities and shopping, and to the jobs centers.
Contact Domain Homes today at 813-580-8111 to learn more about the homes we have available today to match your dream of homeownership in the Tampa Bay area.