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Intelligent_Bat7377 t1_j6y7bvt wrote

can anybody explain why all this new housing is being built in my area (at least 5 houses torn down and townhomes erected on my block alone) but my rent went up >20% in the last couple years? I’m constantly told that this will drive rent down but that is not what me and my neighbors are experiencing

edit: for context this is in tampa

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wsj OP t1_j6ya254 wrote

Intelligent_Bat7377 - Tampa has seen a noticeable influx of new residents over the last few years, which has pushed demand for housing higher, along with prices. This trend only accelerated in the pandemic period. In the fourth quarter of 2022, over 45% of home shoppers looking to buy in the Tampa metro were from out-of-state.

In tandem with the surge in demand, construction has focused mostly in the higher price tiers, with a lot of new properties being priced above the median. This has also come against a backdrop of undersupply from the past decade. The net effect has been that prices and rents have increased. Median list prices in Tampa rose by double-digits from April 2021 until October 2022. Even last month, list prices were still 7% higher than last year.

While new construction is beneficial for the supply pipeline, and should help tame the pace of rent growth, the fact that most new homes carry higher prices will keep pressure on rents in the short term. - George

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