Even if you've owned a home for years, you should care about Tampa Bay's apartment boom
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Mar 26, 2015

A new study shows just how much Tampa Bay's apartment boom has meant to the region's economy - and the total impact goes beyond construction dollars and tax revenue.

In 2013, the most recent data available, apartment construction, operations and resident spending contributed $7.2 billion locally and supported more than 73,900 jobs in the Bay region, according to a study the National Multifamily Housing Council commissioned.

The data is based on research by economist Stephen S. Fuller of George Mason University's Center for Regional Analysis.

Multifamily was the first sector of commercial real estate to come crawling out of the recession, with the construction uptick beginning around late 2011 and early 2012 in Tampa, Orlando and Jacksonville. That was driven by post-recession housing trends - people who lost homes to foreclosure or those whose credit was too damaged to receive a mortgage became renters. Millennials, many of whom saw family and friends struggle during the housing market crash, are delaying buying homes, which is also driving the demand for rental units.

Those dynamics have made lenders and investors very comfortable backing multifamily projects, and financing is what ultimately determines if any development moves forward.

And it isn't over yet. Downtown Tampa and the neighborhoods that ring the urban core will see an onslaught of new construction over the next several years - there are 1,389 units under construction and another 2,900 in various stages of planning, according to data from the Tampa Downtown Partnership.

But even if all the units planned come to fruition, Tampa will still lag competitor cities around the Southeast when it comes to a downtown population - a problem that's broader than a shortage of chic living spaces.

A residential population is key to creating a thriving, 24/7 urban core with lots of dining and entertainment options - and that's key to making the city more competitive in the hunt for jobs and talent. Much of the Millennial workforce wants a walkable, urban environment, and companies locate where talented young workers are congregating.

You can read more on the correlation between downtown residential units and economic development in the March 27 edition of Tampa Bay Business Journal. Ashley Gurbal Kritzer is a reporter for the Tampa Bay Business Journal.