There have been a lot of questions about home affordability in Tallahassee. Recent real estate activity in the single-family market has been characterized by high demand resulting in significant prices increases and bidding wars over some listings.
Over the last two years the median sales price of a single-family home in the Tallahassee MSA has increased 25.8% from $246,500 (May, 20202) to $310,000 (May, 2022).
While the recent increases are getting a lot of attention from local policy makers, how do these increases compare to what is happening in Florida and in other comparable cities?
During the same time period, the median sales price of a single-family in Florida has increased from $270,000 to $420,000, a 55% change. That is approximately double the increase in the Tallahassee MSA.
In addition, over the last two years, the 25.8% appreciation experienced in Tallahassee has been surpassed in comparable locations throughout Florida.
The table below compares the Tallahassee MSA price appreciation with Gainesville, Lakeland, Pensacola, and Fort Myers. The data for Florida is also included.
In May 2020, the median sales price in the Tallahassee MSA was higher than Gainesville, Lakeland, and Pensacola and lower than the price in Fort Myers.
However, in 2022, the median sales price in the Tallahassee MSA was the lowest among the selected cities.
During this period, the median sales price appreciation in the Tallahassee MSA was outpaced by all the selected cities with Fort Myers reporting a 78.5% increase and Gainesville reporting a 56.1% increase.
The comparison shows that relative speaking, homes in the Tallahassee area have remained more “affordable” than in other areas of Florida from 2020 to 2022.