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Tallahassee Real Estate Market 2019 Statistics
Tallahassee is the capital of Florida. However, it is overlooked by real estate investors in favor of hotter markets like Orlando and Miami. Let’s learn more at Tallahassee before sharing ten reasons to invest in the Tallahassee real estate. If you are looking at buying a house in Tallahassee as a potential investment opportunity, you must read till the end. Home prices in the Tallahassee real estate market are expected to rise by 3.8% in 2020.
Tallahassee is home to around 200,000 people. However, the Tallahassee housing market includes a metro area that’s almost as big. This makes the Tallahassee area home to roughly 400,000 people. It means Tallahassee is the largest metropolitan area in the Florida Panhandle. It is the services and trade hub for the Florida Big Bend as well as southern Georgia. Let us discuss the latest Tallahassee housing market trends and forecasts for 2019 and find out why you should invest in this cash flow rental market.
Tallahassee Real Estate Market Forecasts 2019 & 2020
The median home value in Tallahassee is $183,800 on Zillow. Tallahassee home values have gone up 7.5% over the past year and Zillow’s Tallahassee real estate market prediction is that the prices will rise 3.8% in 2020. The median list price per square foot in Tallahassee is $136, which is higher than the Tallahassee Metro average of $131. The median price of homes currently listed in Tallahassee is $219,900 while the median price of homes that sold is $189,700. The median rent price in Tallahassee is $1,150, which is the same as the Tallahassee Metro median of $1,150.
According to LittleBigHomes.com, the Tallahassee real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Tallahassee real estate market trend prediction is 86%. Accordingly, they estimate that the probability for rising home prices in Tallahassee is 86% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Tallahassee Housing Market Forecast 2019 – 2021
The Tallahassee housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Tallahassee housing market trend prediction is 85%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Tallahassee is 85% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Tallahassee Real Estate Market Forecast.
Tallahassee Real Estate Market Trends
Tallahassee real estate market trends indicate an increase of $3,200 (2%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period rose to $117, up from $116. Trulia has 1,525 resale and new homes for sale in Tallahassee, FL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Tallahassee for Jan 25 to Apr 24 was $180,500 based on 833 home sales. Average price per square foot for Tallahassee was $117, an increase of 1% compared to the same period last year. The median rent per month for apartments in Tallahassee for Mar 28 to Apr 28 was $1,150.
Tallahassee Housing Market Statistics
- Median Sales Price: $180,500 (On Trulia)
- Median Rent Per Month: $1,150
- Price Per Sqft: $117
- Median Household Income: $44,590
- Home Owners: 59%
- Single Residents: 42%
- Median Age: 34
- College Educated: 51%
- Transportation: 98% people commute by car
There are 2,096 homes for sale in Tallahassee, ranging from $4K to $5M on Realtor.com. 146 of which were newly listed within the last week. Additionally, there are 588 Tallahassee rental properties up to $4.6K per month. The median list price of homes in Tallahassee, FL was $195K in February 2019, trending up 2.7% year-over-year. The median listing price per square foot was $126.
The median list price in Tallahassee is $122,775 on Movoto.com. The median list price in Tallahassee was less than 1% change from April to May. Tallahassee’s home resale inventories is 7, which increased 0 percent since April 2019. The median list price per square foot in Tallahassee is $105. April 2019 was $157. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in May.
Tallahassee Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Tallahassee is $149,146, which indicates that home prices in Tallahassee are below the national average for all cities and towns. Single family detached homes are the single most common housing type in Tallahassee, accounting for 42.09% of the city’s housing units. Other types of housing that are prevalent in Tallahassee include large apartment complexes or high rise apartments ( 33.50%), duplexes, homes converted to apartments or other small apartment buildings ( 13.61%), and a few row houses and other attached homes ( 8.47%).
The most prevalent building size and type in Tallahassee are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 37.12% owning and 62.88% renting. Currently, there are 938 single family homes for sale in Tallahassee, FL on Zillow. These include upcoming potential listings such as properties which are in the stage of Pre-Foreclosure. Additionally, there are 303 single family homes for rent in Tallahassee, FL.
Tallahassee, FL Foreclosures And Bank Owned Homes
The percent of delinquent mortgages in Tallahassee is 1.4%, which is higher than the national value of 1.1%, according to Zillow.com. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Tallahassee homeowners underwater on their mortgage is 11.1%, which is higher than Tallahassee Metro at 10.1%.
- Foreclosures in Tallahassee = 526 (RealtyTrac)
- Homes for Sale in Tallahassee = 1,424
- Median List Price = $205,000 (5% ⇓ vs Feb 2018)
There are currently 526 properties in Tallahassee, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,424. In March 2019, the number of properties that received a foreclosure filing in Tallahassee, FL was 40% lower than the previous month and 48% lower than the same time last year.
Home sales for February 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Tallahassee was $0. The median sales price of a foreclosure home in Tallahassee was $0, or 0% higher than non-distressed home sales.
Tallahassee Home Prices And Real Estate Appreciation
Tallahassee’s real estate appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in Tallahassee during the period has been just -0.07%, which is lower than 80% of US communities.
During the latest twelve months, Tallahassee’s real estate appreciation rate, at 6.65%, has been at or slightly above the national average. In the latest quarter, Tallahassee’s real estate appreciation rate has been 2.51%, which annualizes to a rate of 10.41%.
The above statistics on real estate appreciation in Tallahassee were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Florida, their data shows that Tallahassee’s latest annual real estate appreciation rate is lower than 90% of the other cities and towns in Florida.
10 Best Neighborhoods In Tallahassee For Real Estate Investment
There are 132 schools in Tallahassee, FL. There are 41 elementary schools, 30 middle schools, 18 high schools and 43 private & charter schools. There are 92 neighborhoods in Tallahassee. Some of the best neighborhoods in or around Tallahassee, Florida are Killearn Estates, Southwood and Killearn Lakes.
Centerville has a median listing price of $550K, making it the most expensive neighborhood. Frenchtown Historic District is the most affordable neighborhood in Tallahassee, with a median listing price of $70,000. Here are the 10 best neighborhoods in Tallahassee to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
- Iamonia
- Oak Knoll Estates / Bridle Path Acres
- Centerville Rd / Mclaughlin Dr
- Apalachee Pky / Chaires Cross Rd
- Old Saint Augustine Rd / Williams Rd
- Centerville
- Bradfordville
- Centerville Rd / Shamrock St S
- Meridian / Blocker
- N Meridian Rd / John Knox Rd
Why Should You Invest in Tallahassee Rental Properties?
Investing in real estate is touted as a great way to become wealthy. Is Tallahassee rental property good for investment? Planning to invest in the Tallahassee real estate market? Many real estate investors have asked themselves if buying a property in Tallahassee is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Tallahassee housing market 2019 forecast for answers on why to put resources into this sizzling market. The home prices in the Tallahassee housing market will be on an upswing all through 2019. The Tallahassee home prices are expected to rise by 3.8% in 2020. Here are the top 10 reasons to invest in the Tallahassee real estate in 2019.
1. The Landlord Friendly Jurisdiction
Florida like much of the South is landlord friendly. There are no limits on late fees as long as they’re written into the rental agreement. There are no state laws on payment grace periods. There are several ways you can hold a security deposit, including posting a surety bond.
If they don’t pay the rent, you can give them a three-day notice to leave. If they intentionally damage the property, you can give them a seven-day unconditional notice to quit the property. You can evict them after multiple intentional violations of the lease, though this requires going to court before you can evict them.
2. The Low Tax Rates
Florida doesn’t charge a state income tax. The state manages to have relatively low property taxes because it relies more heavily on income and excise taxes. Counties and cities levy their own property taxes. This means your property tax bill varies based on the property location as well as its value. One of the benefits of buying Tallahassee rental properties over Miami rental units is the far lower tax bill. Miami’s average property tax bill is the highest in the state.
3. The Lower Carrying Costs
If someone talks about life in Florida, at some point, the topic of hurricanes will come up. After all, it results in regular evacuations making the news, and it is justification for installing natural gas powered generators in many homes. This is a selling point for Tallahassee rental properties over those elsewhere in the state. Hurricanes hit the Atlantic side more often than the Gulf of Mexico shore.
Those hurricanes that do hit will strike Miami, losing steam before they hit the Florida panhandle if they don’t dissipate altogether. This explains why Leon County has the lowest homeowners’ insurance rates in the state. The Tallahassee housing market has insurance rates half the state average and a fraction of the insurance cost of Miami.
4. The Affordable Real Estate Market
The Tallahassee housing market is incredibly affordable. The average home in the Tallahassee real estate market costs around $180,000. This is $40,000 less than the national average. It is also $50,000 less than the average home in the state of Florida.
5. The Potential for Bargains
The Tallahassee real estate market has many opportunities for bargain hunters. For example, 11% of homes in the Tallahassee housing market have negative equity. This is three full percentage points above the U.S. average. Distressed sellers are often willing to sell a house for less than it is worth to avoid going into foreclosure.
About 1.1 percent of homeowners nationwide are delinquent on their mortgage. For those considering Tallahassee real estate investment properties at a bargain, that rate is 1.4 percent.
6. How the Market Keeps Renters Renting
Florida is unusual in having a large permanent renting population as well as a constant influx of tourists and seasonal retirees who add to the rental population. On top of this are jurisdictions that have made it very difficult to build the rental units would-be renters need.
This means there are cities in Florida like Lakeland and Deerfield Beach where it is cheaper to own a home than rent one. The Tallahassee real estate market doesn’t have this problem. It costs about $200 less per month to rent than own, giving renters a reason to continue to rent until they want a house with a yard.
On top of this are the large student market and its demand for Tallahassee rental properties. For example, the city is home to Florida State University and Florida A&M. This gives the Tallahassee area one of the greatest concentrations of students in the state, though it isn’t officially a college town.
There are several benefits to this. First, you can diversify your portfolio of Tallahassee rental properties by owning one by each school. Second, Tallahassee real estate investment is more stable because you can rent to locals if the demand from the school falls off.
7. How the Local Job Market Contributes to the Rental Rates
Tallahassee isn’t the hottest job market in the state. In fact, it is worse than average, though it is getting better. Tallahassee has a higher than average number of workers in poverty. The city came in number 147 out of Florida cities in terms of job security, though the unemployment rate is average.
This means many would be homebuyers in the Tallahassee housing market can’t buy a home for fear of losing it. This results in a large rental population that won’t buy a home though they could in theory afford it. Matters are complicated by the 70,000 or so students in the area who compete with locals for jobs, keeping rents relatively high.
8. The Job Market Poised to Take Off
The Tallahassee job market was middling a few years ago. However, the city is poised for economic growth. It had the fastest growing economy per capita in the state last year. Employers are moving in, and it is becoming easier for people to find a job. As job growth continues, wages and rents will rise. Buy Tallahassee rental properties now while they’re cheap.
9. The Geographic Constraints
Tallahassee like much of the state is seeing steady population growth. Tallahassee is notable for the many state parks and wilderness areas around it, limiting how far it can expand. There are other Florida cities that are similarly, geographically constrained, but most of those are on the coast. Moreover, unlike those coastal cities, the Tallahassee housing market is affordable, though property values are rising.
10. The Steady Appreciation
If you owned a Tallahassee real estate investment property, you would have seen the value rise 7.5 percent in 2018. Home prices are predicted to go up almost 4 percent in 2019. Nor will the Tallahassee real estate market see home prices pulled down by the deteriorating urban core. The average list price per square foot is actually higher in downtown Tallahassee than the broader Tallahassee metro area.
Tallahassee Real Estate Investment
Maybe you have done a bit of real estate investing in Tallahassee, FL but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Tallahassee real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Tallahassee real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Tallahassee, FL. The Tallahassee area isn’t as glamorous as Orlando or Miami. Their high rental rates are offset by their sky-high property prices. Consider a more stable and reliable rental market like Tallahassee, Florida.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Tallahassee, FL is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets.
We can help you succeed by minimizing risk and maximizing profitability. Please contact us for a free strategy session by clicking here.
Other Best Places To Invest In Real Estate
Another market that we suggest is the housing market in Duluth, MN. Forget the Twin Cities and look north to Duluth, Minnesota. It offers cheaper real estate, relatively high rents and a stable housing market that is perfect for investors.
The average rent in the Duluth real estate market is nearly $1400. This is one of the few metro areas where you can charge much more for downtown rentals than suburban ones. This is primarily due to the students who want to live close to campus. You could of course charge much more for single family Duluth rental properties. The going rental rate is $2 per square foot. A 2000 square foot home could then rent for up to $2000 a month.
Another best place to invest in real estate is Palm Bay, FL. The Palm Bay real estate investing offers an excellent mix of affordability, slow growth and high returns. Demand for Palm Bay rental houses ranges from those seeking affordable beach homes in retirement to locals who just need a place to live.
Roughly thirty percent of the people living in the Palm Bay housing market are renters. While this is in line with the national average, it is unusually high given how cheap Palm Bay rental homes would be to buy. This is because per capita income is about 30 percent lower than the national average, and median household income is 20 percent.
A lesser factor in this equation is the growth of Orlando.
The western side of the Palm Bay housing market is on the east side of Orlando’s suburbs. And there are a few people who live here to commute to work in Orlando. The high cost of Orlando housing will slowly drive residents and employers toward Palm Bay.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
Landlord friendly
http://www.landlordstation.com/blog/top-landlord-friendly-states https://www.avail.co/education/laws/florida-landlord-tenant-law
Low Tax
Low Tax for Whom? Florida is a “Low Tax State” Overall, But Not for Families Living in Poverty
Renters keep renting
https://www.valuepenguin.com/2018/11/most-and-least-affordable-cities-florida-homeowners-renters#nogo
https://en.wikipedia.org/wiki/Tallahassee,_Florida
Cheap insurance
https://www.valuepenguin.com/best-cheap-homeowners-insurance-florida
Market taking off
https://www.renttally.com/help-finding-apartments/job-market
Job market contributing to renting https://www.cheatsheet.com/culture/worst-cities-in-america-to-find-a-decent-job.html
Geographic constraints
https://www.floridaparks.com/floridastateparks/north_west/tallahasseearea.html
Affordable real estate
https://www.zillow.com/tallahassee-fl/home-values
https://www.zillow.com/fl/home-values
Steady appreciation
https://www.zillow.com/tallahassee-fl/home-values
The potential for bargains
https://www.zillow.com/tallahassee-fl/home-values
Market Data, Trends and Forecasts
https://www.movoto.com/tallahassee-fl/market-trends
https://www.trulia.com/real_estate/Tallahassee-Florida
https://www.littlebighomes.com/real-estate-tallahassee.html
https://www.neighborhoodscout.com/fl/tallahassee/real-estate
https://www.realtytrac.com/statsandtrends/fl/leon-county/tallahassee
https://www.realtor.com/realestateandhomes-search/Tallahassee_FL/overview
