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Experts Project Home Prices Will Rise over the Next 5 Years

December 4, 2023 2 min read Brenda Bianchi

If you are waiting for Tampa Bay home prices to drop, the experts are increasingly aligned that you will be waiting a long time. After 43+ years watching forecasts vs. actual outcomes, our team can tell you most major forecast houses now expect continued price appreciation through 2030, though at slower rates than the 2020–2022 boom.

What the major forecasters say

Across Fannie Mae, Freddie Mac, NAR, MBA, and the Home Price Expectations Survey panel of economists, the consensus is annual home price growth in the 3–5% range over the next five years. Cumulative gains: roughly 15–25% from current levels.

Why the forecasts converge

  • Supply remains constrained nationally and in growth markets like Tampa Bay
  • Demand supported by demographics (Millennials/Gen Z entering peak buying years)
  • Net migration into Florida and other Sun Belt markets continues
  • Construction costs and labor shortages prevent supply from catching up quickly

What this means for you

If you are a buyer waiting, the cost of waiting is roughly $12,000–$20,000 per year of additional purchase price on a $400,000 home. If you are a seller waiting for higher prices, modest gains are likely but compounded with insurance and tax pressure on holding.

The bottom line

Time in the Tampa Bay market beats timing the market. Our team is happy to walk through what 3–5% annual appreciation means for your specific situation.

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