Over the last several years, Tampa has seen a dramatic increase in rent prices, with rates soaring over 30% compared to previous periods. During the pandemic, this surge was primarily driven by an influx of people seeking Florida's sunshine, ocean breezes, and outdoor lifestyle.
With rental occupancy rates dropping below 5%, the demand for housing reached unprecedented levels, and so did rent rates. Amid this crisis, some residents called for rent control as a potential solution. However, despite ongoing debates and proposals, Tampa has not implemented rent control.
This article explores why rent control is unlikely to come to Tampa, examining the reasons behind its rejection.
Rent Control Downvoted in Tampa
Rent Control Exacerbates Housing Shortages
Luckily, rent control has not been implemented (and likely will not be) in Tampa due to several key factors. Firstly, there is significant opposition from real estate and landlord associations, who argue that rent control can lead to reduced investment in rental properties and diminish the overall quality and availability of housing (UF Warrington College of Business) (Atlanta Civic Circle).
They contend that limiting rent increases could discourage landlords from maintaining properties or developing new rental units, exacerbating housing shortages.
Rent Control Contradicts the Free-Market Principles Florida Loves
Additionally, the political climate in Florida is generally not conducive to rent control measures. The state's legislative and regulatory framework leans towards free-market principles, which favor less government intervention in the housing market (UF Warrington College of Business) (Pacific Legal Foundation). This ideological stance makes it challenging for rent control proposals to gain traction among lawmakers.
In 2022, the Tampa City Council considered an ordinance that would declare a housing emergency and cap rent increases on multifamily units at 5% annually. On August 4, 2022, the council voted against the ordinance by a 4-2 margin.
According to Florida statute, rent control measures can only be adopted if a housing emergency is declared, and even then, they must be deemed necessary and proper to eliminate the emergency. The proposed ordinance was criticized for its vague definitions and potential legal challenges, leading to its ultimate rejection.
There are Better Alternatives to Rent Control
Lastly, there are alternative measures being considered to address housing affordability and tenant protections. For example, some proposals focus on increasing housing supply, enhancing tenant rights, and improving transparency in the rental market (UF Warrington College of Business) (Atlanta Civic Circle). These approaches aim to address the root causes of
housing issues without resorting to rent control, which remains a contentious and divisive solution.
Tampa's Rental Market is Cooling
While rent control is a debated topic, the combination of strong opposition, political ideology, and alternative strategies has prevented its implementation in Tampa.
At Vintage Real Estate Services, we have managed thousands of rental units across five counties in greater Tampa Bay for 15 years, giving us extensive insight into the local market. The surge in rent prices seen in early 2022 was primarily driven by pandemic-related demand, which has since decreased. Recently, we have observed an increase in multifamily units entering the market, and the overall rental market is showing signs of stabilization. Allowing the market to self-regulate is preferable to implementing rent control, which could have immediate and long-term adverse effects.
While the idea of rent control may seem appealing to address rising rents, the potential adverse impacts and historical evidence from other cities suggest there are better solutions for Tampa. Instead, the market is showing signs of natural stabilization as demand decreases and new units become available. At Vintage Real Estate Services, we are committed to supporting tenants and landlords alike, working towards a balanced rental market that benefits all parties involved. We believe that allowing the market to adjust organically, rather than imposing rent control, is the best path forward for Tampa.
David Sigler is a Florida native who grew up in Fort Lauderdale Florida. He attended the University of Central Florida where he received his bachelor’s degree in Business Administration. David has since become a licensed General Contractor & Real Estate Broker. He has been active in Florida real estate and construction for over 15 years. During the Great Recession he was forced to refocus his ambitions and landed on property management. Starting with a handful of homes that could not be sold, he grew his portfolio and eventually bought the brokerage. With his experience, knowledge, and resources, his company prides themselves on successful turn-key residential investment solutions. He now manages hundreds of homes covering 5 counties and his construction company provides maintenance services to his management company as well as other local managers. David is an active member of the National Association Residential Property Managers and has served on the Florida State Board for over 6 years in many different roles; most recently as the NARPM Florida Chapter President (2019). Active in the GTR community, he has served on the property management subcommittee for over 4 years and recently as chair of the group. He is also active in local and state legislation that affects the property management industry. His unique understanding and perspective of property management and its associated maintenance has provided him with numerous public speaking opportunities. Outside of work, not only is he an avid outdoors man and a board member for several local Non-Profit organizations, but first and foremost a Father and Husband.