Real Estate Investing in Tampa, FL: Where to Buy a Property (2024)

Tampa is one of the most popular cities in Florida, and properties in Tampa have nearly doubled since 2018. Tampa is an attractive real estate investment prospect for many buyers who may want to capitalize on the city’s growing number of tourists and lasting appeal with local residents. If you’re interested in investing in Tampa property, it’s important to understand the unique conditions of this growing market.

The Best Investing Strategies In Tampa, FL

Investing in real estate in Tampa can be highly profitable to the astute investor. It’s important to develop the right strategy before you expand your property portfolio, setting out short-term and long-term goals and avoiding potential pitfalls which could harm your investments.

Tampa is increasingly an up and coming area, attracting families and young professionals alike who are swayed by the relative affordability compared to other Florida cities together with a low crime rate, good schools and plenty of parks.

When choosing a property in Tampa, try to keep in mind a target market and stick to a plan. For instance, renovating or extending a property in a family-friendly area could open up a wider market and allow you to turn a healthy profit.

Tampa, FL Real Estate Investment Tips & Tricks

Before investing in Tampa, FL real estate, make sure you read our tips and tricks to help you to get the best out of this city’s housing market.

• Choose your neighborhood: With Tampa being home to nearly 400,000 people, there are highly desirable and less attractive neighborhoods. If you’re aiming to attract families, Palma Ceia and Tampa Palms are an option due to their good schools and low crime rates.
• Decide on a sound investment strategy: Is your objective to sell your property onwards at a higher price, or rather to rent it out? If it’s the former: keep in mind any renovations you will undertake and how much value they will add. Get quotes from local tradesmen in advance and try to compare prices of similar properties in different conditions. For the latter: look at area specific rental yields and decide on target tenants.
• Get some local professional property advice: In a fast paced city with many different real estate options, things change fast and having someone who can identify trends and impart their own wisdom could reap rewards.

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Is Tampa, FL, A Good Real Estate Investment?

The housing market in Tampa has shown consistent growth over the last few years, with typical prices nearly doubling since 2018, which corresponds to just under 15% annual growth over this time period. By contrast, the S&P 500 has had annual returns of 10.69% over the same period.

With the average rental yield in Tampa now north of 9%, supported by strong wage growth in key local industries, investing in a rental property seems like an attractive proposition. If you market your property well and choose good tenants, you can benefit from both a high rental income and your property increasing in value.

An increasingly popular proposition for real estate investors is to target the short term holiday letting market, helped by a burgeoning tourism industry in the city. Whether it’s work, vacation, or both, a high supply of visitors could mean a great return on capital for an investor willing to put in the work and make their property an ideal place for guests.

Is It A Good Time To Invest In Real Estate In Tampa, FL?

The housing market has remained buoyant in Tampa during 2023, and with investors looking at lower interest rates in 2024 and 2025 there is increased optimism that real estate prices are only going to continue climbing.

Tampa’s thriving tech, healthcare and finance scenes are ensuring that high earning professionals are continuing to relocate to the city, with an unemployment rate of 3.2% below the national average of 3.9%, and Florida remains an attractive state to move to due to its low income tax rates and excellent weather.

With Tampa being a city offering plenty of choice, be it young professionals looking to rent in the city center, families looking for an idyllic spot in the suburbs, or tourists just making a quick stop, there’s an opportunity for a smart, diligent investor to carve out their own area of expertise and turn a healthy profit on their real estate investment.

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Best Areas And Neighborhoods To Invest In Tampa, FL

As always, you should consider your target market when determining which neighborhood to invest in. For instance, if you are looking to target families, you might want to consider the upmarket Palma Ceia district, which is served by Plant High School, one of the highest rated public schools in Tampa.

If you want to invest with a tighter budget, you may want to consider family friendly areas such as Tampa Palms and Lutz. Both are covered by the Hillsborough County Public Schools district, which contains some of the highest achieving public schools such as Plant High School, Newsome High School and Steinbrenner High School.

If you are looking for a high rental yield, then you may want to consider the Downtown Tampa area, which will appeal to high earning professionals who will place a premium on being close to the office and surrounded by excellent amenities.

Main Activities, Attractions, And Employers In Tampa, FL

As a quickly modernizing city with excellent weather, tourism in Tampa is on the rise. Some of the main attractions include: the Busch Gardens theme park, the Florida Aquarium, the Tampa Bay Historic Center. Tourism reached a record 26.7 million visitors in 2023, and this rise means higher demand for short term lets such as those on Airbnb.

Tampa’s major employers include the healthcare sector, with Tampa General Hospital, BayCare Health System, and Moffitt Cancer Center all among the largest employers.

Tampa is also home to a rapidly expanding technology sector, with a mixture of startups founded in Tampa and established companies building out an office in Tampa. Amazon, Apple, Microsoft and IBM have all expanded their presence in Tampa over the past years and now represent some of the largest employers in the Tampa Bay area.

There is also a large financial services hub in Tampa, with major firms such as JPMorgan, Citigroup and Raymond James all having a presence in the area.