A recent article in The Laker/Lutz News says Tampa Bay’s housing market is looking strong for 2018 but changes should be expected as the market evolves, according to experts featured at the 2018 Economic Forecast meeting presented by the Tampa Bay Builders Association.

Experts discussed three key findings during the Feb. 6 meeting, with the first involving a sizeable increase in supply of multifamily rental apartments – as much as 50 percent higher than either 2017 or 2016 – expected in the first half of 2018.

Second, the spring selling season will bring with it a historically tight single-family housing inventory. In fact, listed inventory for sale, as measured as a percentage of total housing stock, is at its lowest recorded level in more than 30 years – though that shouldn’t come as a surprise to anyone who’s even considered buying in the last few months. Anything that’s been even remotely affordable for its area and in reasonably good condition has been snapped up very quickly.

Third, they discussed concerns about affordability as the cost to build a new single-family house is increasing drastically, with the under-$200,000 single-family house becoming a nearly extinct species. For context, in order to build the same house as five years ago, it would cost 36 percent more today.

The demand for entry-level homes is constantly increasing, but increasingly fewer and fewer – particularly smaller builders – are able to meet the cost required to build at an entry-level price point. Larger builders, on the other hand, can get the efficiencies and scales needed to build in high volumes and production efficiencies, and can acquire the land in large enough chunks to develop it.

Still, while Tampa is one of the most affordable markets in the state, it is getting more expensive to buy a house, making affordability one of the greatest concerns for experts.

Here are some other key points, statistics, and predictions from the Economic Forecast:

• A supply surge in multifamily could disrupt rent pricing.
• Apartment occupancy has been falling noticeably on a year-to-year basis.
• Investors should shift their focus more significantly in favor of single-family homes.
• Inflation-adjusted median household income in the United States hit a new record high of $59,039 in 2016, breaking a previous high mark set in 1999.
• The cost to build a like-kind single family home has increased 36 percent over the past 5.5 years.
• Luxury markets continue to grow. New home sales priced above $750,000 was the strongest growth category in 2017, increasing 32 percent, year on year.
• Listed housing inventory for sale, both new and resale, as measured as a percentage of total housing stock, is at the lowest recorded levels in 30 years.
• Median housing resale price in Tampa market is expected to be up 7.6 percent in 2018.
• Single-family permits in Tampa market are expected to be up 11 percent in 2018.
• Tampa’s employment is expected to be up 2 percent, which is more than 26,600 jobs.
• There’s a two-month supply of resale inventory, which is virtually none.
• Tampa is ranked No. 2 in the United States for people moving into the area, based on U-Haul truck rental pricing.
• The vast majority – 84 percent – of buyers desire a detached, single-family home, and 62 percent expect to pay $250,000 to $450,000 for it.

But as always, through the lean years, the fat years and all the years in between, the experienced professionals at DeLeon Sheffield Company will work with you until you get exactly what you deserve.

Because at DeLeon Sheffield Company, ‘We’re More Than Realty; We’re Family.’