July 25, 2025

Tallahassee Housing Market Shows Signs of Balance

News Summary

The Tallahassee housing market is witnessing a more balanced environment with increased inventory and slight price adjustments. The median sales price for existing homes has risen by 1.5% to $315,000, coinciding with a notable 18.7% rise in transactions compared to the previous year. However, statewide trends show a decline in Florida’s median sales price. While the market shifts towards balance, challenges such as affordability due to rising mortgage rates remain pertinent for buyers.

Tallahassee is experiencing a more balanced housing market as of June 2025, where rising inventory and slight price adjustments are being observed. The median sales price of existing homes in the Tallahassee Metropolitan Statistical Area (MSA) increased by 1.5% compared to the previous year, reaching $315,000. This shift comes amid a notable rise in transactions, with 388 deals completed in June 2025—an 18.7% increase from 327 transactions in June 2024.

The Tallahassee MSA includes Leon, Jefferson, Gadsden, and Wakulla counties, with Leon County accounting for almost 90% of real estate transactions in the region. This concentration indicates that changes in this area significantly impact overall market dynamics.

Though the local market shows an uptick in activity, statewide trends in Florida reveal a different story. The state’s median sales price experienced a decline of 3.5%, dropping from $427,000 in June 2024 to $412,000 in June 2025. Nationally, however, the median sales price for single-family homes increased by 2% in June compared to June 2024, reaching $441,500.

Inventory and Market Dynamics

The surge in inventory within Tallahassee is significant, as it rose to a 3.3 months supply, up from 2.3 months last year. An ideal inventory level is considered to be between five and six months, suggesting that although the market is moving towards balance, it still faces challenges. New listings in the area increased by 11% to 859 homes, even as closed sales declined, leading to increased inventory levels.

Homes in Tallahassee are also staying on the market longer. The average time on the market increased from 38 days in early 2024 to 42 days from January to May 2025. This extension indicates a shift in buyer dynamics, as potential homeowners may be more cautious in their purchasing decisions in light of economic uncertainties, including higher mortgage rates.

Factors Influencing the Market

Economic experts attribute the ongoing changes in the housing market to population trends and job growth observed during the pandemic. Particularly in Tallahassee, the economy is significantly influenced by state government and universities, diverging from trends seen in other parts of Florida that are predominantly driven by leisure and hospitality sectors.

Moreover, new construction within the city is focused predominantly in the east and northeast regions, with over 60 developments at various stages of permitting that could potentially offer more than 3,370 lots in the future. Nevertheless, experts estimate that hundreds of additional housing units will be necessary to accommodate expected growth in the area.

The real estate outlook in Tallahassee reflects a mixed scenario. While the increase in inventory and a slight decrease in sale prices suggest a more balanced market, ongoing challenges such as affordability related to rising mortgage rates persist. Interest rates and varying economic conditions will continue to play crucial roles in shaping the future trajectory of the housing market in Tallahassee.

Commercial Developments

Alongside residential real estate trends, some shopping centers in Tallahassee are undergoing rebranding efforts to attract new tenants. Despite closures of certain brands such as Party City and Bed, Bath & Beyond, these commercial hubs are successfully transitioning to new anchor tenants, showcasing resilience in the face of market fluctuations.

In conclusion, while Tallahassee’s housing market shows signs of balance with increased inventory and slight price adjustments, challenges remain, particularly for first-time homebuyers. As the economy evolves, close monitoring of housing availability and affordability will be crucial.

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Additional Resources

Author: STAFF HERE TALLAHASSEE WRITER

The TALLAHASSEE STAFF WRITER represents the experienced team at HERETallahassee.com, your go-to source for actionable local news and information in Tallahassee, Leon County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Springtime Tallahassee, Tallahassee Jazz & Blues Festival, and LeMoyne Chain of Parks Art Festival. Our coverage extends to key organizations like the Greater Tallahassee Chamber of Commerce and United Way of the Big Bend, plus leading businesses in education, healthcare, and insurance that power the local economy such as Florida State University, Tallahassee Memorial HealthCare, and Capital Health Plan. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HEREStPetersburg.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.

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