Rentals profit despite downturn

The effects of the latest recession have created a feeling of hopelessness for the real estate sector in Florida. But, a Tampa research firm sees recovery — and even opportunity — for one area of the industry.

Despair has befallen the housing market as words like “shadow inventory” and “distressed sales” are hurled about with abandon. Thirty-five years of experience in the housing industry has taught Michael Slater, president of Triad Research & Consulting, to look deeper into the sector to for clues about recovery.

Slater says rental property owners can rejoice as the recession has changed consumer preferences in their favor. There are more people looking to rent than there are rentals available. “It's simple supply and demand,” Slater says. The unbalance allows rental property owners to forego special offers — such as waiving a month of rent — and raise their rent. “Why buy when you can rent,” says Slater, reversing the old saying about housing.

Developers of multifamily units will also benefit, with Slater forecasting Tampa construction of about 6,000 new units per year over the next three to five years to keep up with demand. This is up from between 500 and 2,000 that were constructed annually since the housing crisis.