Tampa Home Affordability: June 2025 Update

Over the past 5 years, Tampa’s real estate market has seen a dramatic shift. From May 2020 to May 2025, home prices have jumped 51.7%, while household incomes have only risen by 11.6%.

This growing gap has significantly impacted buyer affordability, and understanding the numbers behind it can help you navigate today’s market and stay ahead of the changes.

WHAT’S HAPPENING IN TAMPA?

To afford the average home in Tampa today, a buyer needs to earn $110,880.43 per year. Here’s how the numbers break down:

Median Sales Price: From 2020-2025

-May 2020: $250,000

-May 2025: $379,300

-2020-2025 Increase = 51.7%

Calculating Monthly Payment (Based on $379,300 home, 20% down, and 7.1% interest rate):

-Principal & Interest: $2039.21/month

-Taxes: $329/month

-Insurance: $219/month

-Total monthly payment: $2587.21/month

Using the 28% rule (you should spend no more than 28% of your gross monthly income on housing expenses), a buyer would need to earn:

 -$9,240.04/month or $110,880.43/year

Here’s the reality: Only 37% of households in Tampa earn $110,880.43 or more. That’s why affordability is such a critical issue right now.

WHAT DOES THIS MEAN FOR BUYERS AND SELLERS?

With home prices far outpacing income, more buyers are choosing to sit on the sidelines. And that’s reshaping the market. Here are some considerations:

• Buyers: Now might be the time to make your move. Fewer active buyers means less competition, which means ample opportunities if you’re prepared and strategic. Recently, I’m also seeing a lot of value in new construction. Builders are offering great incentives as they are trying to offload their inventory in this shifting market.

• Sellers: Chances are, your home value has appreciated significantly. But with fewer active buyers in the market right now, pricing matters more than ever.

Overpricing is one of the biggest mistakes I see in today’s market. It leads to homes sitting on the market for too long, losing all momentum, and ultimately selling for less money.

To sell successfully in today’s market, focus on:

-Strategic pricing

-Targeted marketing

-Smart, high-ROI home improvements

In a market where buyers have more options, you want to capture attention right out of the gate because that is when your home gets the most attention and traffic.

NOT SURE WHAT YOUR NEXT MOVE SHOULD BE?

I’m here to help you make sense of this market and move forward with confidence. When the time is right, feel free to contact me to discuss the strategies I’m using in this shifting market.

Best,