Tampa Homestyles Monitors Out-Of-State Luxury Home Buyers Trend

TAMPA, FL — Although the novel coronavirus pandemic has hit many industries hard, Tampa’s real estate industry isn’t one of them. In fact, Tampa is experiencing what is being referred to by experts as a real estate boom. Forbes recently named Tampa one of a handful of U.S. cities that are experiencing this unexpected trend, with both prices and sales on the rise.

While reasons for the industry’s success are not yet entirely clear, one thing is for sure according to area brokers: well-off buyers are pouring in from the East Coast in search of the perfect luxury homes to quarantine in. Tampa Homestyles, a luxury-focused real estate agency managed by Jaime and Chris Brown, is one of many companies that have been flooded with recent business from out-of-state buyers who are willing to pay big for convenient luxury homes.

While out-of-state buyers are incredibly common in Florida, Jaime Brown says she has never seen anything like the current market: she’s been getting more calls from New York, New Jersey, and New England than ever.

Brown has been selling real estate in the Tampa area for over 12 years. She was educated at the University of Florida where she received a B.S. and a B.A. in Decision Management and Information Sciences. After years of working for big name companies like PricewaterhouseCoopers, global consulting firm Protiviti, Accell Global Risk Solutions, and Nielsen, Brown found passion in working directly with clients and transitioned into the real estate business. She learned the ins and outs of the industry while working as a real estate agent at Charles Rutenberg, before founding Tampa Homestyles in 2019.

COVID-19 Pandemic Ushers in New Florida Homebuyers

Brown says that, like many Tampa Bay real estate agents who focus on selling luxury homes, she has noticed an increase in demand from home buyers since the pandemic began. Tampa Homestyles has recently serviced many clients who entered into the market since stay-at-home orders and quarantined lifestyles became the new normal, but were not otherwise planning to move or purchase a new home. What’s the draw? Brown says clients she has worked with from crowded urban areas were driven by a desire to flee dense cities where quarantining was uncomfortable and intolerable. Not only are New York City apartments and brownstones in surrounding boroughs expensive, but they are far less spacious than homes elsewhere. Many of Brown’s clients, often affluent people now with the increased flexibility to work from anywhere, say that it was impossible to work in cramped New York quarters with kids at home.

While buyers from New York City and the Northeast are not uncommon in Florida, New Yorkers who move to Florida often flock to busy and high-energy areas like Miami. But the pandemic has proven that Tampa is trending as the place to be for folks who want to escape overcrowded city lifestyles. Tampa is known for being sprawling and spacious, and Brown says the palatial waterfront homes, increasing the square footage of your quarantined environment are just what people are looking for right now.

Buyers are also drawn to the fact that there are far fewer people in Tampa (just over 335,000 in Tampa proper) than in the densely populated Northeast coast, which makes them feel safer as the virus continues to ravage the country.

Driving in Tampa is easy, and a huge relief compared to traveling on crowded New York subways. In particular, buyers who are used to New York prices are thrilled about how much value they can get in the Tampa Bay area.

Not to mention Florida has no state income tax, which has been a major driving force for many years for Northeasterners to relocate to the sunshine state.

Another big draw for Tampa Homestyles has been that Tampa is rife with large single-family homes. The spaciousness alone is impossible to find in larger cities, Brown says. Most if not all of the luxury homes sold by Tampa Homestyle feature extensive office space where people can work from home. The vast majority have pools as well as home gyms where people can exercise in privacy without having to worry about the spread of COVID-19. This makes for a far more pleasurable time quarantining than it would be in the city, according to Brown’s clients. This is especially true for people who are working from home and have small children, as large Tampa homes give kids plenty of space for kids to run and play without distracting their working parents. Many have told Brown that their living situations in New York City simply does not offer them this kind of flexibility.

Another trend Brown has noticed while working her Tampa Homestyles clients is that out-of-state residents are very serious about buying. Brown says that as a real estate broker, she is used to working with a wide variety of clients, some of whom are serious about making a purchase and others who aren’t. But since the arrival of the pandemic, Brown says she’s begun working with a number of buyers who are eager to buy and close quickly.

While it’s true that people are less interested in physically viewing properties due to the rising COVID-19 cases in Florida, it hasn’t impacted Tampa Homestyles business. Brown has facilitated making the majority of the home buying process virtual, limiting the need for in-person showings. Those clients that do still prefer to view a property in-person take serious safety and social distancing precautions, according to Brown.

Business is also booming in Tampa’s real estate industry because even as housing prices continue to skyrocket, people are more than willing to pay for the benefits of the perfect quarantine paradise. In recent big real estate news, Tampa Homestyles and Jaime Brown were part of the sale of a $6.4 million home on the South Tampa waterfront. The sale set a record for the most anyone had ever paid for a speculative home (not custom-design) in Tampa. There is a lot of demand for modern construction in Tampa, and luxury spec homes, where builders, banks, and investors collaborate to build homes even before a buyer is in place, are popular. The 7,600 square foot Beach Park home features 6 bedrooms and 7 baths, with views of the waterfront and open water access to Tampa Bay.

This sale was not an anomaly, either. Real estate agents across the Tampa area have noticed another curious trend: high-priced homes are selling at higher rates than they were a year ago. This year’s median price for luxury homes increased by 3 percent. Sales of homes priced at $1 million and up have increased 9 percent in the last year, when compared to the previous year. Between March and the end of June, home sales and pending sales in the $2-million and up range also increased by nearly threefold compared to a year ago. And most of these high-end luxury purchases including those sold by Tampa Homestyles have been made by out-of-state buyers. Many Tampa real estate agents say that at least half of all their recent closings have involved buyers from the New York area. Others estimate that up to 75 percent of current buyers are from either New York or New Jersey.

Out-of-state buyers are also very likely to purchase homes priced at $3.5 million and up. Brown says that based on Tampa Homestyles’ experience, she sees no signs of demand slowing any time soon.

Popular Tampa Bay Neighborhoods

Brown says certain neighborhoods in the Tampa Bay area are definitely a draw for out-of-towners. She has genuinely enjoyed showing people who are new to the area around town because there is truly something for everyone. Some people are imagining a future where, depending on how long the pandemic lasts, they have to enroll their kids in school, so that has been a large part of the decision-making process for new Florida residents as well.

In terms of popularity among out-of-towners looking to buy, Brown says Beach Park is at the top of the list as the most desirable community in Tampa. This has long been true, even before the pandemic hit because it is home to the highest-rated school districts. It also features many of Tampa’s most spacious lots and high-end luxury estates. Beach Park is truly for the elite buyer who wants as much space and as many amenities as possible, along with privacy and safety.

Palma Ceia, another of South Tampa’s most sought after neighborhoods, is ideal for families. In part, people have always been drawn to the area because it is home to Henry B. Plant High School, which has been named one of the top high schools in the nation by the Washington Post and U.S. News and World Report. While it is a great place to raise kids, there is also a lot the community has to offer for adults or families without children. Palma Ceia is home to the Palma Ceia Country Club as well as a wide variety of specialty boutiques and restaurants. It is nearby to other popular neighborhoods like Hyde Park and South Howard (also known as SOHO) , and its central location draws people who want to experience the best of everything Tampa has to offer.

Sunset Park Isles dates back to 1954 and has continued to develop over the years. The neighborhood is located in South Tampa, and features Mediterranean inspired architecture. The neighborhood features over 200 restaurants and boasts several local boutiques. Many of the luxury properties boast beautiful waterfront views, making it one of the most desirable neighborhoods in Tampa.

Davis Islands is home to some of the largest properties in the Tampa area, and include some of the most famous residents including Buccaneers quarterback Tom Brady, and former New York Yankee Derek Jeter. The area also is home to Peter O. Knight Airport and the Davis Island Yacht Club.

SOHO is increasingly popular neighborhood in Tampa and home to several of Tampa Homestyles’ current properties. Brown says this neighborhood is ideal for families or single people. While dining and nightlife may not be as popular at the moment, there is great carry-out from many of the area’s restaurants. The Tampa Airport and downtown Tampa, as well as many gorgeous parks are all very near to SOHO. Home styles here range from restored Bungalows to more sophisticated and modern spaces. Some of the most unique homes in the area are inspired by the West Indies.

Bayshore Beautiful is another popular Tampa community that out-of-towners have shown significant interest in. It is a great place to take quiet walks to get out of the house, and along Bayshore Boulevard it features the longest sidewalk in the world, which ambles for 4.5 miles along Tampa Bay. It draws many runners and cyclists, and is a great place to maintain social distance while getting some fresh air and exercise. Bayshore Boulevard is a very historic part of the city, with many homes that have been there since the early to mid-1900s. The area is very well-known for its architecture, Brown says. The area is also home to many parks, restaurants, and high rise apartments and condos for singles or couples.

As people continue to flood in from East coast cities to the Tampa area in search of the perfect quarantine location, Brown says she sees no signs of the luxury real estate industry slowing down any time soon.