Home values in Tallahassee have risen 59% since 2017 nearly double the rate of household income growth. Meanwhile, higher interest rates are cutting into what buyers can afford and creating new challenges for residents trying to own a home.
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Tallahassee home values up 59% since 2017, far outpacing income growth and making homeownership harder
The city’s Year in Review report highlights economic growth, saying Tallahassee’s local economy has expanded 25% since 2017, bringing more job opportunities and rising wages. But census data shows the cost of owning a home has increased far more sharply than income.
In 2017, Tallahassee’s median household income was about $42,000. By 2024, it had risen to about $57,000 an increase of about 35%.
Over that same period, the median value of an owner-occupied home jumped from about $185,000 to $294,000 an increase of about 59%.
Christic Henry, a realtor with Kingdom First Realty, says affordability is no longer just a challenge for one part of town or one income bracket. She says the people struggling to find housing they can afford now include working families across Tallahassee.
“It used to be a time where people understood that affordable housing was for this bracket of neighbors, this income bracket of neighbors. Now, affordability is for everybody. It’s for the working class all the way down to the drive-thru worker.” Christic Henry said.
For people trying to buy, Henry said interest rates add another barrier.
“So if I’m purchasing a house at 3.2% as opposed to 6%, I can afford more house at 3.2% than I can at 6%. So that’s the differentiation.” Henry said.
The city says more than 2,300 multifamily and 700 single-family housing units were reviewed, under construction or completed over the past year. The city also says 374 affordable housing units moved into permitting or completion status.
I’ve asked the city to break down how many of those 3,000-plus housing units are actually complete and how many are affordable. This story will be updated when those numbers are received.
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