Regional Review: Tampa Bay’s economic resilience and growth in 2024
December 2024 — In 2024, Tampa Bay continues to solidify its position as one of Florida’s economic powerhouses, showcasing resilience and growth. The region’s adaptability, strategic location, and dynamic workforce have driven its performance despite national economic challenges and the lingering impact of Hurricanes Helene and Milton earlier in the year. While recovery efforts placed temporary pressure, Tampa Bay rebounded swiftly, with key sectors like financial services, healthcare and tourism playing critical roles in the region’s economic growth.
“For the second year in a row, we are ranked number one in net migration. Our economy is driven by several key sectors, including innovation, talent, civic quality, economic vitality, and infrastructure.” Bemetra Simmons, president and CEO of the Tampa Bay Partnership told Invest:. “In addition to tourism, which everyone is familiar with, we also have strong industries in manufacturing, marine sciences, healthcare, technology, and cybersecurity. What truly sets us apart, however, is the people and the spirit of collaboration that exists here in Tampa Bay.”
The real estate market faced challenges in 2024 as back-to-back hurricanes Helene and Milton exacerbated housing supply shortages and disrupted buyer sentiment. The median home price, now $370,000, dipped 2.6% year over year but remains significantly higher than pre-pandemic levels. Storm-damaged homes are hitting the market “as is” or with increased flood insurance costs, creating hesitancy among buyers. However, demand for newer, elevated homes built to hurricane-rated standards is rising, with builders reporting increased interest in resilient construction. While suburban areas may see slight price corrections due to rising inventory, demand in neighborhoods like South Tampa and Seminole Heights remains steady.
“Unfortunately, with the constant influx of new people into our state, the law of supply and demand has driven up the cost of real estate,” said Heather Kasten, president and CEO of the Greater Sarasota Chamber of Commerce in a recent interview with Invest:. “It is extremely difficult for someone if they do not already have housing to be able to afford to live here. The number one issue our business community has presented is that their employees simply cannot afford to live here.”
Tampa Bay’s life sciences and healthcare sectors continue to expand. The area ranks among the top 25 U.S. markets for medtech talent, according to CBRE, with nearly 10,000 professionals employed across biomedical and engineering fields. Tampa also emerged as one of the fastest-growing regions for life sciences degrees, surpassing national growth rates with a 25% increase between 2017 and 2022, driven by institutions like the University of South Florida and University of Tampa. The sector’s growth is underpinned by investments in state-of-the-art facilities and R&D infrastructure, such as those in Tampa’s innovation districts. Healthcare systems showcased their resilience following severe disruptions caused by hurricanes Helene and Milton, with institutions like Tampa General Hospital deploying advanced mitigation to maintain critical care.
“The impact of Hurricane Helene and Hurricane Milton has been interesting, we had two back to back storms only a week apart. In the first storm many of our residents were displaced by a historic storm surge. In the second storm sustained wind caused the most damage. Combined, the Tampa Bay area saw a level of destruction we haven’t seen in over 100 years,” Kelly Flannery, president and CEO of the South Tampa Chamber of Commerce shared with Invest:. “The medical industry in South Tampa is booming. Tampa General Hospital (TGH) and others are expanding by opening off-site facilities, so people no longer need to visit the main hospital’s emergency room. These standalone ERs and Urgent Cares provide more convenience — fewer lines, easier parking — by bringing healthcare services closer to where people live.”
Tampa Bay’s tourism industry reached new heights in 2024, with record-breaking hotel revenues and continued momentum in both leisure and convention travel. June alone brought in $90 million in taxable hotel revenue, bolstered by large-scale events like Omega Psi Phi Fraternity, Inc.’s Grand Conclave and SOF Week, which drew 50,000 attendees and generated an estimated $40 million economic impact. Despite hurricanes Helene and Milton temporarily displacing visitors and residents, October hotel revenue surpassed $100 million for the first time, with occupancy rates climbing to 78.5%, a 14% year-over-year increase. Sports tourism has played a significant role, with Tampa preparing to host major events like the NCAA Women’s Final Four in 2025 and the Tampa Bay Rays relocating their 2025 season to George M. Steinbrenner Field following storm damage at Tropicana Field.
“Tampa Bay has so much to offer, whether you’re here for business or leisure. For business travelers, the healthcare industry is a huge draw, with strong institutions like BayCare, Advent health, Moffit and others driving growth,” Talib McDowell, general manager at the AC Hotel Tampa Airport told Invest:. “The hospitality industry is also booming, especially with developments like Water Street Tampa, Midtown Tampa and the revitalization of the Westshore district. All these projects have been the driving force around attracting new business and tourists to the area to enjoy our hotels, convention spaces, dining, and entertainment. Food and beverage are thriving, with more Michelin-starred restaurants popping up recently than in the past 5 years.”
For more information, please visit:
https://www.visittampabay.com/
https://www.southtampachamber.org/
