Continuation of a Robust Tampa Bay Housing Market
Interest rates will rise significantly over the course of this year, but they will only act as a speed bump to a surging and vibrant Tampa Bay economy. People will continue to leave major urban areas on both coasts of the country and look for better weather, lower taxes, lesser cost of living, and better overall quality of life.
Expect gains of 15-20% in the cost of housing and further sprawl into less developed areas to the north and south of the Tampa Bay area. Baby Boomers will be retiring for the next decade, and while continued upward pressure on pricing may have some eyeing the Carolinas and Georgia, sheer numbers will be significant enough to keep the supply of homes low. The rental market will remain brisk as first-time home buyers struggle with prices and the timing of entering the market.
Open-Floor Plan Kitchens Lose Demand
Like many home décor specialists have been predicting since the start of the pandemic, open concept floor plans are falling out of favor. Over the past two years, work-from-home and remote schooling have left many Tampa families wishing they had more walls or doors to create a little more privacy among their home-bound family. Recent surveys reflect that shift, with only 38% of homeowners opening up their kitchen to other rooms in 2022, compared to 46% in 2020.
Increase in Creative Consumer-Driven Designs
Our Tampa Bay market (and state) has seen a trend in the last few years of sterile, contemporary home design and color. This is more apparent on the interior of homes and in particular the kitchen where white shaker or slick white frameless (euro style) cabinets have dominated selections of new and remodeled kitchens.
With people spending more time in their homes (confined or otherwise) they are growing tired of the “antiseptic look”. A flock towards individualism is coming. Expect a return to color, especially when used as an accent. Vibrant colors may not become the norm, but they will be seen dramatically more in parts of the kitchen. Also expect a sharp increase in the integration of alternate materials like glass and metals, and the utilization of large islands and open shelving that bring warmth back to the home. Once considered outdated, rich wood tones are coming back, even if they are utilized in modern glossy materials.
Remodeling Projects Will Grow in Popularity
Remodeling will become even more popular this year. With the continued rise in Tampa home prices and inevitable interest rate hikes, lots of homeowners will be taking advantage of refinancing their loans and pulling out cash. Even if remodeling was not in the plans, it may be the best place to put the money you get access to.
A rainy-day fund is a must, but once that is secured, real estate has been a constant investment over the last 10 years that we can count on. Many will test the waters with selling their home, the question remains however, where will you go? If you like your neighborhood, make your home as comfortable as you can and watch the appreciation of your largest investment grow.
Materials Shortages Will Begin to Ease
The backlog of construction materials will start to ease, and availability issues will lessen as supply chains kick into high gear. The pandemic has caused labor shortages for the last 18 months. However, with inflation, the need to return to work is strong for most Americans and with vaccination percentages continuing to increase, we will see the end of significant labor shortages. Suppliers and building professionals have been creative with discovering and utilizing alternate materials to complete projects and when the backorders start rolling in, downward pressure should be applied to help offset the burden of rising interest rates and construction labor costs.