Tampa’s Housing Market Drops in Zillow’s 2025 Hottest Market Rankings: What It Means for Buyers and Sellers
Tampa’s Housing Market Takes a Hit: Drops 19 Spots in Zillow’s Hottest Market Rankings
In a surprising turn of events, Tampa has plummeted 19 spots in Zillow’s latest projections for the hottest housing markets in the United States, now ranking at No. 29 among the 50 most populated metropolitan areas. This shift marks a significant change from 2024, when the Tampa-St. Petersburg-Clearwater area was celebrated as the 10th hottest market.
Zillow’s index, which evaluates housing markets based on various metrics such as local home value growth, sales speed, homeownership rates, and job growth, indicates a cooling trend in Tampa’s once-booming real estate scene. Orphe Divounguy, a senior economist at Zillow, noted that the forecast for the Tampa area suggests an increase in housing inventory, leading to weaker home value appreciation. "In December 2024, the typical home value was 2.5% lower than a year ago," Divounguy explained.
The rankings reveal that Salt Lake City has taken over Tampa’s previous spot at No. 10, while Buffalo retains its position at the top of the list. Other cities also experienced shifts, with Orlando dropping from 9th to 23rd and Jacksonville from 31st to 40th. Miami, however, saw a rise, climbing to 15th place.
Despite the drop in rankings, some experts argue that Tampa’s housing market may not be cooling as much as the numbers suggest. Lei Wedge, an associate professor of finance at the University of South Florida, pointed out that indicators such as increasing home sales and rising average closing prices suggest a resilient market. "In December, the number of homes sold increased from 3,650 to 4,165 compared to the previous year, and the median closing price rose from $382,250 to $385,000," Wedge noted.
Wedge also attributed the recent uptick in activity to the Federal Reserve’s interest rate cuts in late 2024, which may have made mortgages more affordable for potential buyers. "Buyer numbers could pick up again depending on interest rate decisions in 2025," she said, hinting at a potential rebound in the market.
As Tampa navigates this shifting landscape, residents and potential homebuyers are left to ponder the implications of these changes. With the market’s dynamics in flux, the future of Tampa’s real estate remains uncertain, but the city’s vibrant community and economic potential continue to draw interest.
For those living paycheck to paycheck in the greater Tampa Bay region, the evolving housing market presents both challenges and opportunities. Gabriella Paul, a reporter covering these stories for WUSF, encourages residents to share their experiences as the community adapts to the changing economic climate.