Tampa-St. Petersburg Multifamily Market Report

Vacancy to climb at a slower pace. The local multifamily sector is showing signs of stabilizing, after metro vacancy doubled in 2022. This year, the market is expected to have the lowest rate of inventory growth among any major Southeastern metro, reducing recent supply-side pressures. At the same time, household growth is helping to recover demand for rentals. The annual formation of 19,700 new households as of June was nearly 30 percent higher than the local long-term average. Healthy levels of migration supported this trend, helping net absorption return to positive territory over the first six months of 2023, and outstripping the volume of net relinquishments during the entirety of last year. Nevertheless, the marketwide vacancy rate should continue on an upward trajectory, as rental demand in 2023 is expected to remain below the historic norm of 2,500 units.