TAMPA, FL. – The property market in the US in 2021 has been strange, to say the least. On the one hand, the average cost of homes is rising, and you will pay more to buy than ever before.
On the other hand, in many big cities, the price of rent is dropping.
These trends are surprising but are no mystery. House prices are rising because few people are selling as life remains uncertain, and few properties have been constructed over the past year. There is demand but very little supply.
Rent is decreasing, however, because of the struggles so many Americans have had in trying to pay it. Of course, instead of paying peoples’ rent in an efficient way, the government focused mainly on a moratorium on evictions, leaving landlords out of pocket. Many landlords are battling to get back pay, and have had to lower prices to accommodate the new financial reality of their tenants.
However, in Tampa rent has been rising significantly. This trend is not new but has persisted and even increased during the pandemic. Why is rent in Tampa increasing? As a renter, what does this mean for you?
People are moving to Tampa
There is one very simple reason rent prices are rising. People are moving to Tampa. In 2020, Tampa had a net inflow of over 47 thousand people. These are all people who need accommodation, driving up the cost of rent. Furthermore, many of them are coming from city centers where rent is much higher than the national average. Landlords are able to charge them more than they have been charging Tampa natives.
The question then is why people are moving to Tampa. One reason is that people with families are leaving urban centers for suburbia, with the ability to rent larger homes at an affordable price. People are also leaving urban centers simply because they are becoming unaffordable. They move to Tampa where they can have a better quality of life, even if they are moving on their own.
Tampa has good jobs, a low cost of living, and a high quality of life, all of which convince people to make the move. But how will rising rent prices impact Tampa’s economy?
Can Tampa residents pay rent?
Tampa landlords are charging more for rent than ever before, due to the high demand. Long-term tenants have been hit with rent increases that impact their budgets. The problem is that the median income in Tampa is not rising at a proportional rate.
Income in Tampa is increasing, but that simple fact discounts the reality that many people are still looking for work and are in debt from time spent in lockdown with no job opportunities. It will take a while before residents of Tampa are, on average, well-placed for these price hikes.
Can you as a renter do anything about it?
Affording Rent In Tampa
For many, renting a home or apartment is the most practical and affordable option. However, in some cases, the monthly rent can be pretty expensive, making it difficult to meet ends. If you find yourself in this situation, there are a few things you can do to reduce your costs.
One option is to try to negotiate a lower rent with your landlord. If you have been a good tenant and have kept up with your payments, they may be willing to work with you on the price. Another possibility is to look for a less expensive rental unit. This may mean downsizing or moving to a less desirable location, but it can save you money in the long run. Finally, you might be wondering how to get a loan for a rental property. If you have good credit, you may be able to take out a loan to cover your rent expenses. This can be a great option if you need extra time to save up for a more expensive unit. Whatever route you decide to take, be sure to do your research so that you can find the best possible deal.
Cutting costs (renters, health, and life insurance)
You’re unlikely to be successful in convincing your landlord to lower your rent. They are seeing the trends and won’t want to be left behind. At the same time, you are probably not going to be able to suddenly start earning enough to make up for the price hikes.
Unfortunately, this puts you in a position in which trying to cut other costs becomes the main strategy.
Many of the biggest monthly expenses you pay are insurance-related. Switching to different providers with better premiums may help make up for the extra rent. As a renter, you need renters insurance in Tampa. The good news is that you can get good renters insurance cover starting from just $5 a month. It is at least a good deal cheaper than homeowners insurance.
Compare your current health insurance with offers from other providers. Also, make sure your life insurance does not cover you for more than it should. Some insurance providers do try to convince people to take out bigger policies than they need, and you may be paying significantly more than you need to.
Other expenses, such as school fees, groceries, etc. are non-negotiables, and the reality is that you probably already do the best with what you have. Have a look at your insurance policies, as well as any other type of cover you might have to see where you can save.
Rent in Tampa is increasing, and that trend is likely to continue. While renting is still cheaper than the national average, it is fast catching up.
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