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Tallahassee Housing: Rising Values Amidst Political and Educational Hub
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Tallahassee, the capital city of Florida, is a vibrant hub of politics, education, and culture. Located in the state's panhandle region, it is home to Florida State University and Florida A&M University. The city has experienced notable shifts in homeownership rates and housing costs over the past decade, with a general trend towards increased renting and rising property values.
From 2013 to 2022, Tallahassee's homeownership rate fluctuated but showed an overall slight increase. In 2013, 39% of residents owned their homes, while by 2022, this figure had risen to 41%. Concurrently, average home prices in the city saw a significant upward trend. In 2013, the average home price was $153,075, which steadily increased to $265,365 by 2022, representing a substantial 73% increase over this period. This rise in home prices, while potentially beneficial for homeowners, may have made it more challenging for new buyers to enter the market.
The relationship between federal interest rates and homeownership rates in Tallahassee shows some correlation. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in the city increased from 40% to 42%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Regarding rental trends, Tallahassee has consistently maintained a higher percentage of renters compared to homeowners. In 2013, 61% of residents were renters, and this figure remained relatively stable, standing at 59% in 2022. Average rent prices have shown a steady increase over this period. In 2013, the average rent was $858, which rose to $1,165 by 2022, marking a 36% increase. This rise in rent prices, coupled with the city's growing population (from 186,408 in 2013 to 201,728 in 2022), suggests a strong demand for rental properties in Tallahassee.
Moving to more recent data, in 2023, the average home price in Tallahassee reached $277,558, with a further increase to $287,644 in 2024. This represents a continuation of the upward trend in property values. Interestingly, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Tallahassee will continue to rise over the next five years, potentially reaching around $330,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,400 per month within the same timeframe.
In summary, Tallahassee's housing market has been characterized by rising property values and rent prices, with a slight overall increase in homeownership rates despite fluctuations. The city maintains a higher proportion of renters, reflecting its status as a university town and state capital. The recent sharp increase in interest rates, coupled with consistently rising home prices, may present challenges for potential homebuyers in the coming years, potentially sustaining the strong rental market in Tallahassee.
