Top 5 Real Estate FAQs About the Tampa Florida Area

Thinking about buying, selling, or investing in Tampa area real estate? We’ve rounded up the most common questions people ask about the market…and provided straightforward answers to help you make confident decisions when making a move in Florida!

1. What is the Tampa Bay real estate market like?

By the end of August 2025, the median sale price for single-family homes in the Tampa/St. Petersburg/Clearwater area was $400,000, down a bit from $410,000 in August of 2024. Homes now average 43 days on market, and typically receive two offers per listing. Markets across the country are seeing similar slowdowns compared to 2024, as interest rates remain higher than we’re used to.

This slower market is great for buyers who don’t want to deal with excessive competition. And since most local homeowners benefited from such impressive growth in the early 2020s, most sellers are still seeing high profits!

2. Are property taxes high in Florida?

Florida property taxes are relatively average compared to other U.S. states. The statewide average effective property tax rate is about 0.82%, slightly below the .90% national average. In Hillsborough County (where Tampa is located), the rate is closer to 1.02%, which is understandable given the local amenities.

Importantly, Florida has no state income tax, which offsets some of the property tax costs for many residents. If you qualify for the homestead exemption, you can reduce your taxable value by up to $50,000 and limit annual increases in assessed value. Local tax rates vary by municipality, so it’s wise to check specific neighborhoods.

3. How much is homeowner’s insurance in Florida?

Florida homeowners insurance costs significantly more than the national average, mainly due to hurricane risk. As of 2025, the average annual premium is around $3,700 statewide, but many homeowners, particularly in coastal regions like Tampa, pay $4,000 to $6,000 per year to protect their most valuable asset.

Rates vary widely depending on location, property age, construction type, and coverage limits. Florida’s homestead exemption and wind mitigation discounts can help reduce costs, but buyers should always factor homeowners insurance into overall affordability before purchasing a property.

4. Is Tampa Bay a good place to invest in real estate?

The Tampa Bay area continues to be a strong real estate investment market due to its growing population, tourism, military presence, and business-friendly climate. The city ranks highly for job growth and retiree relocation, supporting steady demand for both long-term rentals and short-term vacation properties.

While appreciation has slowed in 2025, rents remain strong, particularly near universities and medical centers. Investors should be aware of local short-term rental regulations and insurance costs, which have risen statewide. With the right property and strategy, Tampa Bay remains one of Florida’s most resilient and profitable markets.

5. How much do I need for a down payment in Florida?

The traditional 20% down is no longer necessary for most buyers. Many Floridians use conventional loans at 3-5% down or FHA loans at 3.5%. And eligible veterans may access VA loans with 0% down options.

Your best down-payment option depends on your credit, income, and loan type, which can vary by lender in Tampa Bay. Always compare offers carefully and consider closing costs too.

Get Reliable Real Estate Guidance from De Costa Realty

Looking to buy your dream home, sell your property, explore investment opportunities, or just make the most of living in the Tampa Bay Area? De Costa Realty is here to guide you every step of the way. Our experienced team knows the local market inside and out and is ready to help you move confidently—whether the market is heating up or shifting. From buying and selling to renting and investing, we provide personalized strategies tailored to your needs. Reach out today to schedule a private consultation and start turning your real estate goals into reality!