The Rising Influence of Corporate Investors on Tampa Bay Housing Market

Tamika Morris, a resident of St. Petersburg, recalls the flood of unsolicited messages clamoring to buy her home. For over two years now, companies like “HomeInc” and “HomeVestors” have inundated her with calls, texts, and letters, eager to purchase her property at cash value, all while skipping the formalities of real estate agents.

Morris, who has cherished her modest three-bedroom home in Greater Pinellas Point since 2004, faces an incessant barrage of offers. The callers often inquire about her asking price, and even her son, who isn’t named on the deed, fields similar calls from interested parties. Yet, regardless of the offers, Morris remains adamant: “There’s no amount of money for me to be able to give up land. Having something to call our own is important,” she affirms.

A Corporate Takeover of Housing

The trend of corporate investors acquiring residential properties isn’t unique to Morris. An analysis by the Tampa Bay Times reveals that more than 27,000 homes across Tampa Bay have fallen into the hands of large investors, predominantly institutional and backed by Wall Street. With over 70% of these properties owned by financial giants, the issue of homeownership becomes increasingly tenuous for individuals.

Key Statistics:

• 27,000 homes owned by corporations across Hillsborough, Pinellas, and Pasco counties.
• More than 70% of these are linked to large investment firms.

The Impact on Homeownership

Such concentration of property ownership has sparked a deep concern among housing advocates and experts. Morris, like many others, worries for her children’s futures in such a high-priced market. “I don’t know how anybody can make it,” she reflects, highlighting the harsh reality faced by prospective homebuyers.

The rise of single-family rentals doesn’t stem solely from investor actions during the Great Recession; it’s a calculated strategy that has expanded over the years. Kendall Bonner, a local real estate broker, notes that while she initially believed these firms would eventually sell their acquisitions, the stark reality is that many remain in the hands of corporate landlords.

Corporate Ownership: A Closer Look

The dominance of corporations in the housing market has been more pronounced post-pandemic. Reports indicate that during the COVID-19 era, nearly 5% of home sales in Hillsborough and Pinellas counties involved individuals or smaller real estate entities selling to larger corporate investors—a stark rise from 1.5% in the previous year.

• Companies like Invitation Homes, with nearly 6,000 properties, lead the pack.
• Corporate buyers frequently make offers that far exceed asking prices, bypassing inspections that often hinder individual buyers.

Neighborhood Changes and Community Impact

The implications of this shift extend beyond personal experiences; entire neighborhoods are being transformed. Critical areas, particularly those traditionally inhabited by minority populations, are witnessing a surge in corporate acquisitions. This has raised alarms about gentrification and displacement.

Effects on Local Communities:

• Higher Rental Costs: Disproportionate corporate control leads to inflated rents.
• Decline in Homeownership Opportunities: Many local families find it increasingly difficult to enter the housing market.

Voices of Concern

Karla Correa from the St. Petersburg Tenants Union emphasizes the detrimental effects of investor behavior. “It’s really uprooting people from their communities,” she argues, pointing to the long-term ramifications of corporate purchases. City representatives, like Council member Richie Floyd, echo these sentiments, acknowledging the acute lack of control over investor activities.

Memories in the Making: The Personal Side of Homeownership

For Morris, homeownership transcends financial investment; it’s about memories and heritage. After years of moving around as a child, she longed for her own stable environment. “The little accidents that happen — a cut on the rose bush, or you break an arm trying to race around the block — those are the memories,” she recalls fondly.

However, local housing prices are pushing family members away. One of her sons has relocated due to skyrocketing costs, and her daughter struggles to find housing within a budget.

Conclusion: The Future of Housing in Tampa Bay

The ongoing changes in Tampa Bay’s housing market call for crucial conversations about the role of corporate investors. As the area grapples with rising costs and shifting demographics, understanding the implications of corporate real estate ownership becomes paramount.

Moving forward, discussions around policies, community engagement, and awareness of these corporate dynamics will shape the future of homeownership in the region. Exploring these critical themes, “Buying up the Bay,” an ongoing series, will delve deeper into the effects of corporate investment on tenants, maintenance issues, and the acceleration of gentrification in historically Black neighborhoods.

Learn more about the impact of real estate investors on the housing market in Tampa Bay by following updates from credible news sources and engaging in community discussions.

For a visual representation of corporate homeownership in Tampa Bay, explore the interactive map available here.