Happy Thursday!

This week we’re taking a look at a few ways that Tampa is working to improve and invest in our transportation infrastructure.

Officials are struggling to keep up with the area’s booming growth, so new grants, plans, and budgets are in the works to solve the problem.

We are also diving into how the housing market has soared in the U.S. over the past year in spite of rising interest rates.

Enjoy.

—Sean

💰 Tampa considers increasing developer fees to fund infrastructure projects

Driving the news: Tampa is considering a significant hike in fees imposed on developers to fund its transportation infrastructure, according to the draft of a document that is expected to be presented to the city council

Details:

• The draft analyzes the city’s existing fee system which was last overhauled in 1989. The analysis showed that millions more in fees could be appropriated for Tampa’s infrastructure.
  

• The document also suggests the shift from a "transportation impact fee" to a more versatile "mobility fee." This fee would diversify the usage of revenue, accommodating technological advancements in traffic management.
  

• Currently, Tampa levies an average of $1,772 in transportation fees for a single-family home (2,500 sq.ft) and $914 per unit for a two-story multifamily project.

Why it matters: The current fee structure is not competitive when juxtaposed with Tampa's neighbors.

A surge of over 50% is necessary to catch up, but such a significant hike is only permissible under "extraordinary circumstances" and could hamper real estate investments.

The big picture: According to mayoral spokesperson Adam Smith, while the administration is actively reviewing various fee structures, there's no concrete proposal as of now.

By the numbers:

• An analysis by Orlando-based Fehr & Peers highlighted a lost revenue of approximately $30 million between 2004 and 2017, a consequence of inflation and the lack of indexing to the Consumer Price Index. This translates to a yearly loss of over $2 million.

• The city has averaged a yearly collection of $340,000 in proportionate share mitigation fees since 2015. However, data inaccuracies are common due to manual tracking and no centralized database.

Between the lines: The city's progression towards a revised fee system is intertwined with contrasting perspectives.

Institutions like the James Madison Institute perceive impact fees as regressive. The Florida Legislature, on the other hand, has been advocating tighter restrictions on these fees.

The bottom line: Tampa’s decision on this fee overhaul is something that will undeniably impact the city’s growth and infrastructure significantly.

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💪 Tampa Secures $1.75M Federal Grant to Propel Transit Initiatives

Driving the news: The U.S. Department of Transportation has greenlit $1.75 million in grant money for Tampa, which will fund a new office to oversee large transportation projects.

Details:

• The upcoming "Regional Infrastructure Accelerator" will dive into funding solutions for a series of projects: elongating the TECO Line Streetcar, instituting a bus rapid transit line towards the University of South Florida, and creating a $500 million comprehensive bike network.
  

• Alongside these immediate projects, future ventures, including a high-end transit route connecting downtown to Tampa International Airport, will also be assessed for potential financial support.
  

• The cumulative cost of Tampa's desired transit enhancements stands at an estimated $1.8 billion.

Why it matters: Mayor Jane Castor emphasized the transformative potential of this initiative, noting, "It will reshape the fabric of development when orchestrated around mass transit."

What’s next: The city is gearing up to seek loans for its ambitious transit dreams, especially with traditional financing avenues yet unexplored by both the city and Hillsborough County.

One notable loan format under consideration is the TIFIA program, a financial instrument that facilitates significant private co-investment.

The bottom line: As Tampa continues to grow, solutions and grants like these are necessary to keep up with the many needs of the transportation infrastructure.

💸 U.S. Housing Market Value Soars $2.6 Trillion YoY

Driving the news: The total value of the U.S. housing market has increased by more than $2.6 trillion year over year, climbing to just under $52 trillion, according to a new Zillow analysis.

That’s an increase of 1.3%.

Details: In the Zillow analysis:

• Miami edged out Washington, D.C. to make the top five most valuable metros, led by New York, Los Angeles, San Francisco, and Boston.

• Florida has climbed to the #2 spot on the list of most valuable states. California remains at the top.

• New construction gets most of the credit for the growth in total home value, as existing home sales have fallen this year.

• Builders are adapting to buyer needs and leaning into higher-density construction, offering incentives like mortgage rate buydowns and prioritizing smaller and more affordable homes.

Why it matters: The housing market is a major driver of the U.S. economy, and its record-breaking growth is a sign of strength.

The big picture: The housing market has seen a remarkable turnaround since the start of the pandemic, with home values soaring and new construction on the rise.

However, rising mortgage rates and inflation could pose a threat to the market's continued growth in the coming months.

Between the lines: Builders are facing challenges such as higher mortgage rates and record-low affordability, but they are adapting by offering incentives and building smaller and more affordable homes.

What's next: The housing market is expected to remain strong in the near term, but rising mortgage rates and inflation could pose a threat to its continued growth in the coming months.

The bottom line: The U.S. housing market is booming, but the high cost of housing remains a challenge for many Americans.

📊 Our Current Local Market Data: 

The Pasco and Tampa markets are still hot for several reasons:

• Inventory is low

• Our job market is desirable

• Many people are moving to the area

If you are thinking about buying a home in the area, you should be prepared for a competitive market. You will need to be pre-approved for a mortgage and be ready to act quickly when you find a home you like.

I am happy to help you create a home-buying strategy that will allow you to navigate the current market.

If you ever have questions, don’t hesitate to ask.

If you’re curious how much your home could sell for now, then reply “What’s my home value” or you can get an estimated value here.

Or if you’re just curious about how the current market affects your situation & what’s going on in your specific neighborhood, just reply & ask.

📰 In Other News:

• JW Marriott Clearwater Beach has one of the best rooftop restaurants in Florida
  

• Spooky shenanigans get underway in Tampa Bay for Halloween
  

• Snowcat Ridge snow park reopening in next month with brand-new attraction

That’s all for today, I hope you have an amazing week!

If there’s ever anything you need:

• a custom market or home value report

• a home services list for a reliable contractor or services professional

• feedback or a professional opinion on a home project

Just let me know! We’re here to help with all your home needs.

Talk soon,

- Sean, and the Bello Home Team 

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