Thanks in part to the competitive housing market, homebuyers are especially conscious of viewing their home as an investment. High costs have been encouraging people to try and figure out what the next “hot” neighborhood will be - since the currently hot neighborhoods are often out of budget.
The best way to find good investment opportunities in real estate is to pay attention to which neighborhoods offer the amenities people are looking for. A neighborhood with good transportation options, restaurants and bars nearby, and nearby amenities (like grocery stores) will continue to gain traction - and if homes are similar neighborhoods nearby are selling for a lot more, they’re likely undervalued.
So which neighborhoods in Tampa are potentially great for first-time homebuyers who want an affordable option today, but a good return on investment tomorrow?* Here are several up-and-coming neighborhoods worth looking into.
*not financial advice
Easy access to both the water and downtown Tampa should never be underestimated, and Palmetto Beach has both. Even though this is an urban area, there are plenty of single-family homes. The neighborhood’s 17-acre park has a swimming pool, fishing pier, basketball courts, waterfront fitness trail, playgrounds, and more.
Why it’s a good investment:
The mixed-use development of the waterfront is going to bring fresh appeal to this neighborhood located just a 6-minute drive from downtown Tampa. Palmetto Beach is right next to the trendy neighborhood of Ybor City and has plenty of its own cafes, bars, and eateries, allowing for walkability.
What our Tampa Realtor has to say:
"Palmetto Beach is a great area, home to parts of Ybor, great breweries, some fun repurposed buildings, and historic bungalows. It's also home to IKEA. It's just a short drive to downtown. And it is a really good place for convenience to highways for commuting," notes Tampa-based buyer agent Sunny Crockett.
Coolest feature:
The Mckay Bay Nature Park & Trail Observation tower offers an escape to nature as well as a breathtaking view of the city across the water.
Stats:
Tampa Heights is the oldest neighborhood in Tampa, with easy access to downtown. This historic and diverse neighborhood has been up-and-coming lately and generating a lot of real-estate buzz, but it’s not too late to get in on a good deal - prices are still appreciating and there are plenty of lower-cost fixer-uppers on the market.
Why it’s a good investment:
Easy access to downtown, chic local restaurants, and close to the nearby medical facilities? This location will continue to be appealing to home buyers of all ages. Additionally, its location in a preferred flood zone means that this area is less likely to be impacted by devastating floods in the future - something buyers are going to keep paying attention to.
What our Tampa Realtor has to say:
"Tampa Heights is fantastic. It is Tampa's oldest neighborhood, and home to Armature Works, beautiful green spaces for relaxing, the river walk, and some great new construction options that blend well with the beautiful bungalows in the area," explains Crockett.
Coolest feature:
In 2018 Armature Works opened in the neighborhood - a 1910 streetcar barn repurposed with a food hall, restaurants, rooftop bar and co-working and event spaces - and young professionals were drawn to the region in new numbers.
Stats:
Further reading: Is Tampa Heights the hottest real estate market in Tampa Bay?
What it’s about: Carver City/Lincoln Gardens is located close to the Tampa International Airport, and contrary to what some people may believe, airports often represent a great investment opportunity. As the world becomes more and more connected, people increasingly value property locations near transportation hubs - Forbes notes that “half of the Fortune 500 companies in the USA are headquartered within 10 miles of a hub airport.”
Why it’s a good investment: On the popular neighborhood App NextDoor, neighbors have described Carver City as “walking dog friendly, peaceful, and convenient,” with “clean parks." Altogether, these are exactly the elements that help neighborhoods gain traction and build [value] over the years.
What our Tampa Realtor has to say:
"Carver City-Lincoln Gardens is a little newer and close to the hubbub that is Westshore. It's great for people who love to shop, and dine in restaurants and establishments that are more well known, as opposed to local," explains Crockett.
Coolest feature: Lincoln Gardens Park
Stats:
Further reading: Carver City Ranked One of the Best Places to Live in America
Names after the Sulphur Springs Water Tower that can be found here, Sulphur Springs is a quiet neighborhood with numerous parks and easy access to downtown Tampa (12 minutes away by car). Historic bungalows are still relatively affordable in this area. The nearby Hillsborough River State Park allows for easy nature access.
Why it’s a good investment:
This area has elements of desirability that will come into play as Tampa continues to expand outwards - and many Tampa real estate agents believe that Sulphur Springs will be the next “it” neighborhood as the trendiness of Seminole Heights continues to push upward. The neighborhood’s proximity to the city, as well as important local attractions like Busch Gardens, will help sustain its growth. Walkable bars and restaurants like the New World Brewery - which features live bands and an outdoor beer garden - will hopefully continue to proliferate in this area as it grows, and help breathe new life into it.
Coolest feature: The Sulfur Springs Water Tower makes for amazing photos thanks to its resemblance to a Rapunzel-like castle turret next to the Hillsborough River.
What Our Tampa Realtor has to say:
"Sulphur Springs is up and coming. It's fairly reasonably priced - it's on its way back up from a long time of disrepair," says Crockett.
Stats (via Redfin):
If you’re looking for neighborhoods that will continue to appreciate in value, you want to avoid areas that have experienced little to no growth this past year - especially because the housing market has been so crazy that even typically slow-growth neighborhoods have experienced a lot of upward traction.
Tampa neighborhoods to avoid if your main goal is getting in early on an up-and-coming neighborhood include:
Of course, these aren't "bad" neighborhoods by any means! And with the right Realtor, you can sometimes uncover gems-in-the-rough even in very popular neighborhoods.
The best neighborhoods in Tampa to invest in are changing all the time as the city continues to grow - by the time you read this list, the neighborhoods listed above may have already grown into the next "it" neighborhood. So what can you look for? Here are a few things to keep an eye out for.
Finally, consult with a local Realtor to get the most up-to-date take on investable neighborhoods. Neighborhoods can shift quickly, and agents often have extensive information about future development plans, potential challenges (like commute times), and more. Get in touch with a Tampa agent.