Housing costs in Florida, whether you rent or buy, is up all over… but especially here in the Tampa area. Why is the situation so bad here? 60 Minutes tackled the issue last night. Missed it?
The biggest factor? Wall Street. Investors rarely even look at the home when it gets listed. They have a big advantage over traditional home buyers. Investors make all cash offers within an hour for full price. Sellers love it because they can close in 15 days. No staging, repairs or painting is necessary. Big companies buy the properties and then renting them out. Revenue is up 67% for one company they interviewed. In a given week, they buy 200 to 300 homes but get about 10,000 inquiries. The biggest spots are in the sun belt… Atlanta, Charlotte, Phoenix and, you guessed it, Tampa. They say it’s where Americans want to be. No surprises here – they’re coming from the northeast and midwest because taxes are lower, there’s a friendlier business environment, and of course, better weather.
There’s even a big influx of buyers and renters from Miami, where the cost of living has gone even higher.
But corporate landlords only account for about 2% of the ownership of single family homes in the U.S. So that can’t be the only factor. It’s not. Another big thing driving costs up for renters and buyers is that America was not building enough housing this past decade because of what happened during the housing crisis of 2008 and 2009. There was a reluctance to do home construction because of the plummet in home values 10-15 years ago.