- Multifamily vacancies in Tampa exceeded 10% for the first time in 15 years, rising by over 200 bps compared to 2023.
- Tenant demand surged, with 3.7K units absorbed in the first half of 2024, 200% more than 2H23.
- Tampa added 7.4K new units in 2024, with Pasco County accounting for 4.6K of those, contributing to elevated vacancy rates despite positive absorption.
- A further 11K units projected for completion in 2025 will keep vacancy rates above the five-year average of 6.9%.
Tampa’s multifamily market continues to enjoy robust tenant demand. Unfortunately, high supply levels have pushed vacancies to their highest point in 15 years, as reported by GlobeSt.
By The Numbers
According to Boutique National’s latest report, vacancy surpassed 10% in Q2—an increase of more than 200 bps on a YoY basis.
The region absorbed 3.7K units in 1H24, a 25% increase from the same period in 2023 and a remarkable 200% boost from 2H23.
However, the 7.4K new units delivered during the year—especially in Pasco County—outpaced demand, pushing up vacancies.
Slipping Rents
The market’s elevated vacancy rates have softened rent growth, with asking rents down 1.3% YoY. Boutique National predicts landlords will continue to struggle to push rents, even at pre-pandemic levels, in the face of ongoing oversupply challenges.
While rent growth is expected to return to positive territory by 2025, it will likely average just half of the 10-year annual growth rate of 5.0%.
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Construction Boom
Looking ahead, Tampa’s multifamily market is expected to face further strain as another 11K units are projected for completion in 2025. This would set a new record for the city, keeping vacancy rates well above their historical average for the next several years.
The supply-demand imbalance is especially pronounced in Pasco County, where vacancy rates already exceed 20%. While the area absorbed 1.9K units in 2024, it received 4.6K new deliveries, putting more pressure on occupancy levels.
What’s Next?
High interest rates have made it increasingly difficult for CRE firms to secure capital, slowing the pace of new developments. While this may eventually curb supply growth, the market is unlikely to see significant relief from elevated vacancies until absorption catches up to completions.
Tampa’s multifamily market will likely remain under pressure in the near term, with vacancy rates staying well above historical averages.
While tenant demand remains robust, the ongoing multifamily construction boom and high vacancy levels will limit rent growth, challenging landlords and developers alike through 2025.
