TALLAHASSEE, Fla. (WTXL) — The housing market in Tallahassee is moving toward a more balanced market, according to housing experts, as the city sees more housing construction. Here's what it means for buyers.
- Director of the DeVoe Center at Florida State University Sam Staley says the new construction is efforts to try to catch up on development as the city experiences more growth.
- Despite more homes on the market, there aren't enough buyers, leading to longer listing times.
- Watch the video to learn more about the impacts of additional housing and how buyers can gain more leverage in the market.
BROADCAST TRANSCRIPT:
From apartments to homes, new housing options are popping up across Tallahassee.
It's a wave of development that's hard to miss.
“There's lots of choices, you know, anything from really tiny homes that are 1,200 square feet, you know, up to luxury in homes,” Hettie Spooner said.
So, what's driving this surge?
"We have been falling behind for the last decade in providing enough housing for the people that are moving into Leon County and moving into the Tallahassee metropolitan area,” Staley said.
Florida State University's Director of the DeVoe Moore Center Sam Staley tells ABC 27’s Brieanna Smith it's a catch-up effort.
"We're seeing a lot of construction, but the reality is we're still playing catch up,” he said.
But what does that mean for the market?
Smith talked to the owner of Hill Spooner & Elliot Real Estate Hettie Spooner.
She says despite the number of homes on the market
They were off to a slower start this year.
“Well, we've got more competition. If you've got more listings to choose from -- things used to fly off the shelves in like one week because we didn't have a lot to choose from. But nationwide, we're seeing a surge in listings and then not an increase in buyers,” Spooner said.
One reason is it's harder to qualify.
Zillow lists the average home in Leon County at nearly $300,000.
A recent SmartAsset study shows it takes about $97,000 dollars for a single adult to live comfortably in Florida.
But the median income was about $66,000 dollars in Leon County in 2023, according to the Census.
That's a 30,0000 plus dollar difference.
"We're seeing also where listings are staying on the market longer. We're seeing more price reductions,” Spooner said.
That's why Staley says new development could improve affordability.
"What happens is that we build more housing. That housing, as households move out, then they move into different housing. That older housing becomes affordable housing for a new household,” he said.
With the market shift, buyers are gaining back some bargaining power.
"Things are on the market longer and so it's giving the buyer the leverage to go in and say, ‘Hey, I’m not going to offer you full price and maybe I need closing cost assistance,’” Spooner said.
Staley tells Smith that this development is a sign of healthy market growth and predicts the city needs hundreds more units to account for additional growth for the next couple of years.
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