Rentals Rise in Tampa Bay During Florida Mortgage Activity Slowdown

Across the Tampa Bay housing market, Brandon remains the community with the most residential rental vacancy for the fourth quarter of 2006, but it might not be that way for long.

Rental occupancy in Brandon has jumped nearly 23 percent over the past year in its 11 communities, according to the most recent survey conducted by RealFacts. Its average rental rates edged higher with it, jumping 2.7 percent to just under $900.

Renters also are looking to neighboring community Riverview to live as well, especially as housing affordability in the region remained an issue.

Occupancy there rose 15.8 percent over the year to finish at just 2.7 percent vacancy. Rents there also have risen, this time by more than 4 percent, to an average of $919 a month. How come? Because landlords raise prices as Florida mortgage activity slows down. They have leverage over tenants.

Brandon and Riverview were the exceptions, however, as occupancy has taken a dip in the Tampa and Sarasota housing markets as renters start to react to rising costs, RealFacts executives said.

Occupancy in Tampa has remained steady in 2006 compared to the previous two years, according to the survey, with just 6 percent vacancy in Tampa, St. Petersburg and Clearwater. The same cannot be said for the Sarasota/Bradenton/Venice area, however, as occupancy dropped 5.6 percent to 92.3 percent while average rents in that area jumped 4.2 percent to $928 monthly.

Only Naples-Marco Island ($976) and the Miami real estate market ($1,135) had higher average monthly rents.

For the year, average rents per square foot were up in Tampa, from 88 cents in 2005 to 93 cents this year.

Transactions of multifamily properties are down so far year-to-year; however, some end-of-year data may not yet be included, RealFacts said. The Tampa market reported 19 transactions in 2006, allowing 4.8 million square feet to change hands for $503.4 million. If rents and Florida mortgage loan costs continue to rise, most people will just stay put.