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Tampa Bay Housing Market’s Popularity Creates New Home Lot Scarcity

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Here’s a snippet from the article detailing this trend in today’s St. Petersburg Times:

You wouldn’t know it from the bulldozers, concrete mixers and clouds of construction dust, but the Tampa Bay area, in the midst of one of its healthiest housing booms, is running out of lots.

Metrostudy, a national real estate research firm, said the region has only a 91/2-month supply of lots on which to pour slabs or raise roofs. Lest that sound plentiful, the normal state of affairs is an 18- to 20-month supply.

“For the first time in 20 years, we’ve had less than a 10-month supply of lots. The demand for housing has outpaced the ability to deliver the lots,” said Tony Polito, director of Metrostudy’s Tampa office.

This is, of course, caused by the high demand for housing throughout Tampa Bay. Prices continually grow higher throughout the area, primarily due to increased demand for housing and due to the lack of available housing space, which is affected by the number of lots available to build new homes, condos and townhomes on. Low interest rates, which are converting renters to buyers in droves, along with the massive number of people relocating to Tampa Bay for retirement or new employment are the primary causes.

The lot shortage will likely continue as the popularity of Tampa Bay as a place to live increases. Prices will also likely go up, as long as the popularity factor and low interest rate factor are in play. However, once rates go up to 8 percent, prices will likely adjust somewhat.

Click here to read the entire article from today’s St. Petersburg Times.

-John Mudd
“Mr. Real Estate”

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