The Tampa Bay rental market is undergoing a notable correction, with prices falling 7-8% in many areas compared to last year, according to local property management expert Lei Cheng. In a recent interview, Cheng discussed how the end of remote work policies and an influx of former vacation homes are changing the local rental landscape.

“Starting from 2023, the rent started going down,” said Cheng, who manages over 700 rental properties through Service Near Realty. With experience closing over 600 real estate transactions since 2018, Cheng has observed significant market changes firsthand.

Tampa Bay has seen a marked reversal from the COVID-era surge, when remote workers from higher-cost states drove strong demand and elevated rental prices.

Key Factors Behind Price Declines

Cheng notes that several factors have contributed to the recent shift in Tampa Bay’s rental market dynamics. The reversal of remote work policies has played a major role, as many professionals who relocated to Florida during the pandemic have now been called back to offices elsewhere. “In 2023, once COVID was over and many high-tech companies asked their employees to go back to their office to work, I saw the trend change,” Cheng explained. “Many people who even purchased homes as second homes in Florida lived there for one year, then needed to move back to their hometown and turn that home into a rental property.”

This shift has led to a surge in available rental inventory. “Suddenly, there are so many rental properties coming into the market because that was somebody’s seasonal home, vacation home before,” Cheng said. The resulting oversupply has extended vacancy periods and put downward pressure on prices. “Now it takes a longer time to rent out a home. When you list for $2,400, it stays in the market for two weeks, three weeks, four weeks, but not many people even request showings.”

During 2021-2022, Tampa Bay experienced a surge in rental demand from out-of-state remote workers. “So many residents, so many tenants, were coming from other states, like from Boston, New York or California. They moved to Tampa temporarily,” Cheng said.

These temporary residents brought higher purchasing power. “Their income in California or Boston is much higher than the pay in Tampa Bay area. We asked about $2,500, $3,000, $4,000 a month for four bedroom or five bedroom. They don’t care. They said, ‘God, the rent is so cheap, and it’s a brand new home.’”

Market Correction Takes Hold

The correction has been swift. Cheng’s company, which rented out 310 homes in 2024, is now facing longer vacancies and frequent price adjustments.

“Usually after one or two weeks, after we test the market, we need to quickly adjust the rent,” Cheng said. “We do not want to have the vacant home in the market for so long, because every single day of vacancy is a loss to the homeowner.”

Zillow data shows rental decreases of $50-$100 across Wesley Chapel, Lutz, Tampa, Riverview, and Ruskin.

Advice for Property Owners

Cheng offers straightforward advice to property owners facing the new market conditions. Many out-of-state owners are reluctant to accept lower prices, hoping to maintain previous rental rates.

“Sometimes the homeowner in California doesn’t believe it, because in California, the rent is still going up,” he said. His team uses market data to help owners understand pricing and minimize vacancies.