Tampa sees sizeable jump in 2Q housing starts
(Tampa, FL – July 18, 2012) The Tampa housing market is increasing in housing activity as expected, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
The Tampa MSA gained 17,300 jobs according to the Bureau of Labor Statistics, placing Tampa Bay in the top 20 in the nation for job creation as of the May report. This was the best of any Florida MSA. The June jobs numbers will be released July 20. With a workforce of just over 1.3 million, the Tampa MSA would need to see the number of unemployed workers drop under 92,000 to report a local unemployment rate under 7%. We’re currently at about 113,355 unemployed workers,” said Tony Polito, director of Metrostudy’s Tampa Region.
During 2Q12, 1,245 single family units were started, an increase of 24.4% compared to 2Q11. The annual starts pace increased to 4,386 annual starts, 16.7% higher than last year’s rate. “We expect that by the end of 2012 new starts to be between 5 and 15% higher than 2011” said Polito. In terms of unit count, Metrostudy forecasted an increase in new home starts for 2012 in a range between 4,200 and 4,600 new units. The current annual start pace of 4,386 is inline with our expectation for the Tampa Bay market. “Continued job growth, qualifying for a low mortgage rate, and consumer confidence will all play a part going forward,” said Polito.
Closings totaled 1,351 units in 2Q12, 68.5% higher than 2Q11, the cyclical low point in closings during this down cycle. Annual closings stood at 4,560, which was 10.0% higher than the annual rate at this time last year.
Finished vacant inventory decreased to 1,071 units, down 21.8% compared to 2Q11, and representing a 2.8-month supply. This is down from 3.9 months during 1Q11. “This positive trend and the improving months of supply reflect an improving market and dynamics which could include rising prices for the new home sector” said Polito.
For information contact:
tony polito @ 813.888.5151 x811
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.