News Summary
The housing market in Tallahassee is seeing significant changes, with rising inventory and declining sales creating a more balanced environment. The median sales price of existing homes has decreased, while new listings have surged. Despite rising supply, the number of closed sales has dropped, resulting in more homes remaining unsold. The increase in average days on the market provides buyers with greater negotiation power, revealing ongoing challenges in affordability and alignment with prospective buyers’ budgets.
TALLAHASSEE – The housing market in Tallahassee is undergoing notable changes as rising inventory and declining sales create an increasingly balanced environment. In June 2025, the median sales price of existing homes within the Tallahassee Metropolitan Statistical Area (MSA) was recorded at $315,000, reflecting a slight decrease of 3% from the previous year. This adjustment aligns with a broader trend observed in the Florida housing market, where existing home sales have fallen by 2.7% month over month, marking a nine-month low.
The Tallahassee market has experienced a significant increase in overall housing inventory, with the current supply rising to a 3.3-month inventory as compared to 2.3 months during the same period last year. This uptick in available homes is largely attributed to a surge in new listings, which have increased by 11%, resulting in 859 homes entering the market. However, the number of closed sales has notably declined, contributing to a greater number of homes remaining unsold.
Average days on the market for homes have also increased, now sitting at 42 days, an uptick from 38 days over the previous year. This extended duration signifies a shift in market dynamics, providing buyers with more bargaining power as they navigate their purchasing decisions. Price reductions are becoming more common, reflecting challenges in aligning home prices with what prospective buyers can afford.
Current economic trends in Florida are influencing the housing landscape. Since the beginning of the COVID-19 pandemic, Florida homes have appreciated over 50%, yet the state’s housing remains appealingly affordable to many out-of-state buyers. Tallahassee’s unique market dynamics are primarily shaped by a significant presence of government employment and the university population, which contributes to the overall demand for housing in the area.
Growth in the construction sector is evident, particularly in the eastern and northeastern regions of Tallahassee. The SouthWood area is currently developing around 275 new lots, while the Tallahassee-Leon County Office of Economic Vitality reports that there are approximately 60 major residential developments in various stages of permitting or construction. This proactive development effort aims to meet the rising demand for housing and address ongoing challenges in affordability.
The gap between residents’ income levels and average listing prices for homes remains a critical concern. Economic experts have suggested that factors like interest rates and housing affordability will play pivotal roles in the future trajectory of Tallahassee’s housing market. With an influx of new residents during recent years, the economic climate in Florida has added further complexity to the market’s dynamics.
As city officials continue to seek solutions to stimulate development and improve housing affordability, the Tallahassee housing market appears to be at a crossroads. Inventory levels and demand fluctuations are prompting new strategies to ensure that current residents and newcomers alike can find suitable housing opportunities.
In conjunction with these housing market developments, the Tallahassee Police Department is addressing other community concerns, including recent drug-related incidents. In a significant drug trafficking bust, officials seized over 130 pounds of marijuana, leading to charges against four individuals, highlighting ongoing efforts to maintain public safety.
As Tallahassee navigates through both housing market transitions and public safety challenges, community stakeholders are closely monitoring these developments to adapt to changing conditions effectively.
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Additional Resources
- Tallahassee.com: Housing Trends
- Google Search: Tallahassee Housing Trends
- The Famuan: Declining Home Sales
- Wikipedia: Real Estate
- Florida Trend: Real Estate
- Google News: Florida Real Estate
- Tallahassee.com: Commercial Real Estate
- Encyclopedia Britannica: Urban Planning
- WTXL: New Homes in Tallahassee
- Google Scholar: Tallahassee Housing Market
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.
