Tampa Bay Market Update

[Andrew Steffens]

I just finished my weekly call with my revenue manager, and we recapped the 1st quarter 2025.  In this post I ill only focus only comparison to the 1st quarter of 2024.  This post will also only focus on paid occupancy (revenue) as a metric, for the sake of keeping this somewhat brief.  

Year over year analysis shows' the market is down 2.3% when stays of 28+ nights are included.  If you remove the longer stays, the market is up 3.2%.  I think this distinction is important because of the amount of longer stays that occurred following  the storm in late 2024.  If there was no storm, the numbers would be even higher, as the longer stays were typically discounted.  This metric points to a market climbing off of 2023 lows following the end of COVID correction.

Some takeaways:

- Using either variation of the metric, Vacation Rentals of Florida was 21% or 22% up YoY, beating the market substantially.  This highlights the importance of the things I think we excel at, namely revenue management.  You can have the best unit in the best location but if it is not priced and marketed optimally it will suffer.  I employ a revenue manager (fractional) that checks all 65ish listings daily in conjunction with software.  I recommend some type of software on daily, or near daily checks of pricing against your comps.

- The general Tampa market rebounded very quickly from the storms. This is an analysis of the STR market, which is different than the sales market. Speaking of the sales market - take articles with a grain of salt. I do agree for example the overall Tampa values are down YoY, this includes all overbuilt new construction and all areas in general. Properties that do the best as STR's are by definition desirable areas to both live and visit. These zip codes remain competitive (low DOM) and likely to continue to be through summer sales season and potentially a drop in rates.

- Digging further into individual unit performance, the best units win.  As a manager, these are the owners that listen when told they need to make repairs or upgrades, and they bought a nice unit in the right area and furnished it professionally.  Some units of lesser quality or finish can be viable with proper pricing adjustments, but not all.

In summary, the Tampa market continues to be very viable and if approached with the right expectations and attitude, can be very lucrative in long and short terms. If you are considering this market, work with a STR professional on the sale, do not skimp on furnishing/finishes/photos, have reasonable expectations, and either hire a pro manager or manage it like a pro and you should find success.

I hope anyone considering this market finds this useful, I am always available to answer any questions!

[Patricia Andriolo-Bull]

So glad to hear given all of the weather issues the Tampa had in the Fall.  SWFL did much better over the same time period also, guessing as people had to cancel trips to Anna Maria Island and Sanibel and move further south.