Tallahassee, Florida, USA downtown skyline.
Buying, Local Market Report, Renting

East Coast Market Outlook: Tallahassee, Florida

Capital of The Sunshine State, Tallahassee is a college town full of mossy oaks and award-winning outdoor recreation. If you’re trying to decide whether to rent or buy, use this as your go-to reference!

Capital of The Sunshine State, Tallahassee is a college town full of mossy oaks and award-winning outdoor recreation. The metropolitan area, which includes the city and four surrounding counties, is home to about 390,000 residents and the reputable Florida State University.

Market Snapshot

In 2015, the average starter home cost was about $48 per square foot. That average has increased 40% to almost $68 per square foot. According to Florida Realtors, the median starter home price in the area currently sits at $185,500, while the median sales price for all homes is about $227,000.

Meanwhile, average Tallahassee rental prices are increasing by about 1.03% each year; not a staggering amount, but they currently sit at around $1,012 for a 2-bedroom unit. 

Tallahassee, Florida, USA downtown skyline.

Why Consider Buying Now?

Long term, appreciation is expected to remain steady for the area. In the short-term, however, it seems to have slowed down compared to years prior. Tight inventories aside, this could open the opportunities for renters to enter the market before rates accelerate again. 

According to the National Association of Realtors, the value of a typical home in Leon County alone was about $230,900 in Q4 2019. With a 10% down payment, and a 4% interest rate (higher than current rates), they estimate that a buyer would pay about $993 each month for their mortgage — lower than the current rental average costs. 

Of course, there’s the added costs of utilities and services. But locking in a low mortgage rate now will keep monthly costs the same, opposed to rent prices that trends are suggesting will continue to increase. 

What to Prepare for

Like most markets, Tallahassee’s market is tight. However, with COVID-19 restrictions easing, sellers are looking to place their homes back on the market. Be prepared to act fast, as the time between listing and selling now averages about 21 days. 

Some Advice?

Nicholas Mihalich, president of the Tallahassee Board of Realtors, suggests buying now as long as you will be in the house for the next 3-5 years. “There is not much lower priced housing being added to the market, so demand will continue to outpace supply,” stated Mihalich. “Consequently, owning a home here is a safe and secure way to build wealth.”

Start Your Home Journey Today!

If you’re thinking about buying, Homes.com has the simply smarter tools to help you get started. From mortgage calculators to a comprehensive “How-To” guide, we’re your one-stop resource to find your dream home. 

Content Marketing Assistant at Homes.com | See more posts by this author

As Homes.com's content marketing assistant, Sydney gets to combine one of her favorite pastimes with her job– keeping up with pop culture. Outside of work, she enjoys stepping away from her phone and computer and spending time with her friends, whether it's just hanging out or traveling. Trying new foods, going snowboarding, and long road trips are some of her other favorite things to do, but what does she loves the most? When people read Homes.com's blog articles, of course!

Leave a Reply

Your email address will not be published. Required fields are marked *