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The new year may see a market benefitting homebuyers as experts predict growth for Tampa and the rest of the state.
Chief economist at Zillow Skylar Olsen says Florida is leaning toward a buyers’ market. That’s when home prices drop due to an abundance of supply.
“Of the top four largest Florida markets, we do expect Miami to continue to be the most competitive and appreciate 4% over the next year. But, you know, followed closely behind Tampa, then Orlando, and Jacksonville,” Olsen told WMNF.
High insurance rates are still a cause for concern, and Olsen says it may be a top concern for buyers in 2025.
“Really appealing to them was affordable payments, right? And maybe they locked in to low mortgage rates, they’re feeling good, they’ve got this low monthly payment, but the insurance payments start spiking up.” Olsen said.
Olsen says homebuyers now are looking at smaller dwellings.
The word “cozy” was listed 35 percent more in Zillow listings last year.
The new year also brings new predictions for the rental market.
Olsen says rent is “softer” now than normal due to a lot of new apartment construction over the past few years.
But,
“That said, in most markets, rents are still taking up a larger share of income now than they did pre-pandemic,” Olsen said.
According to data from Zillow, from 2019 to 2023, rent increased by 50 percent in Tampa with wages only increasing about 15 percent.
In 2019, Tampa Mayor Jane Castor assembled a Housing Affordability Advisory Team to address housing affordability.
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