Since 2013 the single-family median sale price in the Tallahassee MSA has increased by 10%, from $170,000 to 187,000 in 2016. The Tallahassee MSA includes Leon, Jefferson, Wakulla, and Gadsden.
This increase is significantly lower than the 30.5% increase reported for the state of Florida during the same time period.
In 2013, the single-family median sale price in Florida was $168,000 – just below the $170,000 reported in the Tallahassee. However, as of 2016, the median sale price statewide has increased to $219,000.
Further comparison shows that the median sale price in other North Florida cities has also lagged the statewide increase from 2013-2016.
The chart below shows that the growth in single-family median sale price did not surpass 17% in Gainesville (16.1%), Tallahassee (10.0%), Panama City (11.2%) or Pensacola (12.9%) during this time period.
What factors could be driving the difference in sale price growth during this period?
Demographics, which describes the composition of a population, such as age, race, gender, income, migration patterns and population growth can be a significant factor that affects how real estate is priced.
For example, population growth normally results in increasing demand for housing and provides a sellers market and higher prices. Interestingly, a recent report by TR shows that population growth in the four cities listed below was below the state average from 2010 through 2016.
Also, population is in part driven by characteristics of the local economy that includes jobs and wages. Once again, while the unemployment rate has improved in North Florida, the pace of recovery in terms of jobs and wages has lagged behind gains seen statewide.