P
hoto by Gregory Bowers

    As the new year begins, experts predict a market shift that could benefit homebuyers in Tampa and across Florida. According to Skylar Olsen, chief economist at Zillow, the state is leaning towards a buyers' market, where an abundance of supply drives down prices.

    While Miami is expected to remain competitive, with prices appreciating 4% over the next year, Olsen forecasts that Tampa will follow closely behind, along with Orlando and Jacksonville. However, high insurance rates continue to be a concern for homebuyers in 2025, as they may lead to unaffordable payments.

    In response, buyers are now opting for smaller dwellings, with the word "cozy" appearing 35% more frequently in Zillow listings last year. The rental market is also expected to see changes, with Olsen noting that rent growth has slowed due to new apartment construction. However, rents still account for a larger share of income than pre-pandemic levels.

    In Tampa, rent increased by 50% between 2019 and 2023, outpacing wage growth of just 15%. The issue of housing affordability remains pressing, with Mayor Jane Castor's Housing Affordability Advisory Team established in 2019 to address the problem.