Located in western Florida, Tampa is one of the most famous cities on the peninsula, as well as one of the most populous: with nearly 400,000 inhabitants, it ranks third after Jacksonville and Miami. The city overlooks the Gulf of Mexico and, as also happened for the city of Orlando, its name is linked to the presence of Native Americans in the area. It seems that the name "Tampa" meant "sticks of fire" in the language of the Calusa, a population of red Indians settled there, who attributed this name to it due to the suggestive storms that characterized the area in the summer season.
Being one of the main cities within the Gulf of Mexico, Tampa is famous for the wider Tampa Bay which hosts about 4 million residents and has over time become the commercial center of international importance.
Let's find out 5 facts about Tampa and the reason why this city is chosen by numerous investors for their investments in the USA.
1) Tampa was ranked the best Florida city to live in in 2021
The survey was published on Bankrate.com, one of the most distinguished websites dedicated to investments and personal finance. According to reports, Tampa ranks first, out of a selection of 25 major Florida cities with more than 100,000 residents, for the best quality of life for its inhabitants.
Although each individual follows personal and subjective criteria in choosing the city they want to reside in, some general parameters allows to assess whether a place is suitable to go and live there or not.
These criteria are, for example, accessibility to properties with a good quality/price ratio, safety, access to good education, and local entertainment.
The quality of life of residents is a parameter that must always be taken into consideration when buying a buy to let property, the first criteria related to the stability of rental income is precisely linked to the tenant's continuity in staying in a property.
Tampa therefore not only holds the primacy of privileged tourist destination in West Florida but also stands out as one of the most popular places for the residents themselves for employment growth and development of the territory (Source: Urban Land Institute).
To all of the above we can add a particular attention towards individual citizens, the presence of good services, and an open mind towards diversity, all of which are important factors that encourage both new residents and foreign companies to move to this city. The latter, by moving or building their headquarters in Tampa, has a great impact on local GDP. One example among many is the famous pharmaceutical company Pfizer (yes, the one of the vaccine), which announced its intention to create its hub of over 9,000 square meters in Tampa. This is not the only major pharmaceutical company to have moved to Tampa Bay since 2013: before Pfizer, it was the turn of Johnson & Johnson, Bristol Myers Squibb, and Amgen. Together, these giants have generated more than 1,500 jobs to date and invested more than $80 million in the state of Florida.
From one of the latest speeches made by Mayor Jane Castor, last year the city invested 4.5 billion dollars in development (45% more than the previous year, despite the situation linked to Covid19).
All these factors make the Tampa area extremely attractive and ideal land for anyone looking to purchase a buy to let house in Florida.
2) The MacDill military base is the second most important government facility after the Pentagon
In several articles in our blog, we talked about the importance of the milestones when evaluating a good investment. Some cities, such as Jacksonville, Fayetteville, and Tampa, benefit from the presence of government structures that have a direct impact on the local economy, a key factor in buying a buy to let property.
MacDill Air Force Base is located just 6 km from downtown Tampa and it is the headquarter of the Central Command of the United States of America, that oversees American action in the Middle East.
From the latest reports provided by the base, it emerged that approximately 23,000 people work at MacDill, with a significant number of officers residing with their families inside the facility, but also a large proportion residing outside the base, in the Tampa Bay area. The military base has a far-reaching impact on the city's economy: we are talking about over 3 billion a year.
A report conducted by the Hillsborough Bureau of Labor Statistics on the employment status within the military base found that the average annual salary of the staff employed is over $46,000 net. When you choose to purchase a buy to let property, the presence of a military base of this size has a double effect of creating a pool of potential stable tenants and more generally of contributing to the local economy, thus encouraging the permanence of other types of residents.
3) A source of stability for your investment: +55 individuals
Not everyone knows it, but Tampa is one of the favorite destinations of the so-called "snowbirds": these are citizens from the northern states and Canada who, upon reaching retirement age, decide to move to Florida to enjoy the mild climate and the first-rate services offered by some cities. In response to the large entry of retirees into the area, Tampa has met their needs with real ad hoc housing structures: these are residences designed specifically for individuals over the age of 55. Communities +55, this is their name, are real enclosed housing complexes (also called "condos"), composed of apartments of different types and entertainment areas of all kinds. Everything is designed for older tenants and their needs. Often within these residences, there is also direct access to the beach and these structures are located in the center of urban contexts where you can easily find shops, restaurants, parks, and other attractions.
The age requirement is asked in the rental contract of the Home Owners Association (HOA) of the residence. These HOAs, similar to common condominium associations, are distinguished from them by their greater decision-making power and services to residents: they are responsible for the maintenance of common areas and can set requirements on settled tenants, including personal data and employment.
Communities +55 have always been a solid investment, as well as one of the simplest investments in the USA. Given the average age of the tenants guaranteed by the contract, it is possible to hold a well-managed property in a well-kept context and with stable and continuous income over time: the average tenant settled in the +55 residences is less inclined to move, thus reducing the risks of rental turnover. Investors interested in purchasing buy to let homes can thus opt for a solid investment and reliable tenants.
4) The port of Tampa Bay is the largest one in Florida
The Port of Tampa Bay is located about 40km from the Gulf of Mexico and generates an income of 17.2 billion dollars a year. The recent study that originated these data defined the complex as the largest economic engine in West Florida. In addition to the direct impact on the local economy, it is also worth mentioning the influence on the labor market: there are approximately 85,000 direct and indirect jobs created by the Port and total salaries have been calculated at 5.1 billion dollars, with direct influence on spending power and local consumption. Furthermore, according to what the port's institutional website reports, between 2012 and 2015 the port's tonnage increased to 3.4 million tons. The presence of an economic player of this magnitude ensures continuity of the employment situation and gives the town of Tampa important economic well-being.
It is also essential to mention that the Port welcomes nearly 1 million passengers a year and is served by international cruise ships. In evaluating where to buy a house to rent abroad, it is therefore important to consider the Tampa area and the related hubs, as well as the economic and employment induced by these major players in the local economy.
5) International attractiveness and real estate sector: the data you do not expect
The real estate sector in Tampa and Hillsborough County more generally is in great turmoil today. The factors mentioned above, and more generally the great attraction that the area exerts at an international level, are certainly complicit in this, making Tampa an ideal destination for those who want to buy a house to rent or simply go and live there.
From the latest data coming directly from the website tamparealtors.org, a leading organization dedicated to the local real estate market, it emerged that in June 2021 the sales concluded in the county underwent an increase of 9.8% compared to 2020. The average real estate value, thanks to the birth of new services, companies, and entertainment venues also recorded an increase of 25.5% compared to June last year. It is important to mention that the great demand for housing in Tampa is causing a net decrease in the day on market of properties for sale: we are talking about only 5 days before a property is sold. In June of last year, it took about 28 days before the property was reserved! The new owners are both future residents and international investors who have chosen to buy a home to rent in Tampa.
But why does everyone want to live or invest in Tampa? As already mentioned, Tampa is located in an optimal climatic context, has a well-kept and optimized urban planning for both residents and tourists, and is well connected to the main cities of Florida, including of course Orlando and Miami. In addition to this, it offers immense opportunities for those looking for well-paying jobs in prominent companies and leisure opportunities for individuals of all ages. To top it all, the presence of beautiful white sand beaches and an International Airport located just 12 minutes from the center serving over 93 non-stop destinations.
If you are interested in investing in the US and are thinking of buying a house to rent in Florida, book your consultation with OPISAS now and choose to invest in the stability and international attractiveness of Tampa.
