Happy Wednesday!

We have a lot going on in Tampa this week!

TPA has a renovation plan finalized, and the insurance market is showing signs of improvement just in time for hurricane season.

We are also taking a look at how mortgage rates are impacting each generation and the housing market as a whole.

—Sean

✈️ Tampa International Airport's
Expansion Plan Unveiled

Driving the news: Tampa International Airport (TPA) has finalized its updated master plan, which recommends significant expansions.

The plan, mandated by the Federal Aviation Administration (FAA), outlines major new developments to accommodate future growth.

Details:

• New Terminal: Proposed north of the current terminal, requiring new gates, a ticket lobby, and baggage carousels. Estimated costs and ROI are under scrutiny.
  

• Projected Growth: By 2042, TPA is expected to handle nearly 39 million passengers annually. Plans include 22 new aircraft gates, 83 additional ticketing counters, and up to four more baggage carousels.
  

• Other Proposals: Expansion of employee and economy parking lots, runway and taxiway improvements, and potential sites for Advanced Air Mobility (electric air taxis).

Why it matters: This update is crucial for TPA's long-term growth, so it can meet increasing passenger demand and maintain high service standards.

It also shows the need for infrastructure improvements to support Tampa's growing population and tourism industry.

The big picture: While the proposed new terminal isn't within the 20-year plan, TPA has to modernize its current operations to keep pace with projected growth. 

Enhancements to ticketing and luggage handling are prioritized between 2026 and 2029 to ensure efficient service.

What's next: TPA will present these recommendations to the Hillsborough County Planning Commission and the FAA this summer. 

The FAA will then develop TPA's new Airport Layout Plan. The next master plan update is expected in five to seven years.

The bottom line: TPA's updated master plan sets the stage for strategic expansions and modernizations to keep up with Tampa's dynamic growth and maintain the airport's reputation for excellence.

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This 0.70-acre lot is in a prime location for building your dream home! Enjoy private living just minutes from Spring Hill and Brooksville. No HOA or CDD fees.

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✨ Highlights:

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A fantastic opportunity to build the perfect home in a desirable location. 🏡

🏚️ Tampa Bay Insurance Market Shows Signs of Improvement

Driving the news: Tampa Bay’s largest property insurance carriers have successfully secured reinsurance for the 2024 storm season, a potential positive shift in the reinsurance market.

Details:

• Slide Insurance secured $1.86 billion in reinsurance for 2024, along with a $210 million catastrophe bond.
  

• HCI Group obtained $2.7 billion in coverage, supported by multiple private reinsurers and the Florida Hurricane Catastrophe Fund.
  

• Heritage Insurance acquired $3.15 billion in coverage from both new and existing reinsurers, maintaining last year’s cost of $422.3 million but transitioning away from the Hurricane Catastrophe Fund.

Why it matters: This progress in securing reinsurance is crucial for Tampa Bay’s insurance market, which has faced difficult challenges due to high storm losses and rising costs.

Increased participation from private reinsurers and the stabilization of reinsurance pricing has created a more secure financial footing for local carriers.

This stability is essential for homeowners who need these insurers for coverage during the storm season.

The big picture: While reinsurance remains expensive, the market is showing signs of leveling out after years of price hikes.

What’s next: If pricing remains stable or decreases more, it could lead to more favorable conditions for both insurers and policyholders in the future.

The bottom line: Tampa Bay’s insurance carriers have made significant progress in securing reinsurance, indicating a potentially brighter outlook for the local insurance market.

This is great news for homeowners as we enter the upcoming storm season.

📊 Mortgage Rates Under 4%: What It Means for Your Generation

Driving the news: Over 60% of outstanding mortgage loans in the U.S. have rates below 4%, according to Freddie Mac's latest Economic, Housing and Mortgage Market Outlook.

The report focuses on mortgage rate dispersion by generation, revealing which generations are most likely to drive purchase and refinance activity in the coming months.

Details:

• Gen X and Millennials have the lowest average locked-in rates at 4.0%, while Gen Z has the highest at 4.9%.
  

• Despite their low average rates, 4-5% of Millennials and Gen X have rates above 7%.
  

• More than 90% of Gen Z are first-time homebuyers.

Why it matters: The data on rate dispersion shows a higher potential for refinance activity among older generations, particularly Gen Xers and Millennials.

If rates drop below 6.5%, an additional 1.4 million borrowers, primarily Gen Xers who are more likely to refinance, will have their current rates locked in at over 6.5%.

The big picture: Millennials are expected to be the biggest supporters of the purchase market, while Gen X homeowners will be the heroes of the refinance market if and when rates drop.

However, mortgage rates are not the only factor determining market activity across generations, as home prices will continue to influence homebuyer and homeowner decisions in the months ahead.

Between the lines: Gen Xers and Boomers are more likely to stay put and keep their low rates due to their proximity to retirement, while Millennial homeowners are more likely to make a move for personal or professional reasons, despite less than optimal market conditions.

What's next: Steady price growth may slow down for an extended period, influencing homebuyer and homeowner decisions, along with mortgage rates, as time goes on.

The bottom line: Freddie Mac's report shows how mortgage rates vary across generations, giving us important insights into which age groups are likely to drive buying and refinancing in the near future.

Millennials and Gen Xers will play key roles in shaping the housing market.

📊 Our Current Local Market Data: 

The Tampa and Pasco markets are HOT as we get into the peak summer months!

I am happy to help you create a real estate 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:

• 3 Tampa Bay cities among fastest growing in the U.S.: report
  

• Jimmy Buffett’s new Margaritaville cruise ship just arrived in Tampa
  

• 50 Father’s Day restaurant specials in Tampa Bay

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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