The Rise of Build-To-Rent Homes in Tampa Bay: A Game-Changer for the Housing Market

In recent years, the housing market in Tampa Bay, Florida, has been undergoing a remarkable transformation fueled by the emergence of a new housing trend: build-to-rent (BTR) properties. Eaton Realty is a full-service real estate brokerage that helps renters find homes to rent and investors purchase and manage rental properties. With our boots on the ground in the Tampa real estate market, we’ve had firsthand exposure to this rising trend.

What Are Built-To-Rent Homes?

Built-to-rent homes are single-family homes designed specifically for rental purposes. They are making a significant impact on the local real estate landscape by addressing housing shortages and offering unique benefits to both renters and investors.

How Build-To-Rent Homes Are Helping To Address the Housing Shortage

Tampa- St. Pete - Clearwater has emerged as a prominent player in the BTR housing movement. According to a study conducted by Yardi-Matrix for RentCafe, Tampa Bay ranks 6th in the nation for the number of build-to-rent homes under construction, with approximately 1,400 units in the pipeline. This surge in BTR supply is a response to the city's critical housing shortage, with nearly 28,000 homes needed for sale or rent, as indicated by a recent Zillow analysis.

Why BTR Properties Matter

The BTR housing concept offers a unique proposition that appeals to a wide range of potential renters. These properties provide the advantages of professional property management and additional amenities, all without the requirement of a substantial down payment or a long-term commitment to a single location. As Doug Ressler of real estate research firm Yardi Matrix highlights, BTR homes have found a niche among individuals who either can't afford or choose not to buy a traditional single-family home.

The BTR Boom in Tampa Bay

The BTR supply in Tampa Bay has witnessed exponential growth over the last five years, expanding by a staggering 156%, according to a report by listing service RentCafe. This upward trajectory is expected to continue, with Tampa ranking among the top 10 cities in terms of the number of BTR homes currently under construction.

Florida, and Tampa in particular, has been at the forefront of the BTR trend. The Sunshine State's appeal to baby boomers seeking low-maintenance living has driven demand for these homes. This demographic values the convenience and reduced upkeep associated with renting, especially in the Florida market.

Expert Insights and Industry Support

Experts in the real estate industry recognize the significance of BTR properties in addressing the housing crisis. According to David Howard, CEO of the National Rental Home Council, built-to-rent housing is emerging as a highly desirable sector of the housing market. Given the ongoing housing shortage in the United States, any increase in housing supply is viewed as a positive step towards alleviating the crisis.

However, it's important to note that while BTR homes offer a solution to housing shortages, they are not a comprehensive remedy. The BTR trend contributes to easing the supply crunch, but it won't single-handedly resolve the housing crisis.

Looking Ahead

The momentum of the BTR movement is showing no signs of slowing down. National construction of new BTR homes hit a record high recently, with a substantial number of houses completed and even more under construction. Tampa's embrace of this trend positions the city as a notable player in reshaping the rental housing landscape.

Ultimately, the rise of BTR properties in Tampa Bay demonstrates an innovative approach to addressing housing shortages and catering to the changing preferences of renters. While challenges such as affordability and corporate ownership remain, the BTR trend offers a valuable solution in a market where housing supply is desperately needed. As the demand for flexible and well-managed rental options continues to grow, the BTR movement is set to reshape the future of housing in Tampa Bay and beyond.

Find Your Next Property To Rent Or Rent Out With Eaton

Based in Lithia, the realtors at Eaton Realty serve residents throughout Hillsborough County. We can help you find the perfect home to rent as a tenant or to buy as a landlord. We also help landlords turn their rental properties into truly passive sources of income with our Tampa property management services. We can handle everything for you so that you don’t have to. You can learn more about working with Eaton by filling out an online contact form, or by calling 813-672-8022.