Navigating the Tallahassee Real Estate Landscape: Insights from Industry Experts

In late August, Joy Blomeley, alongside Steven Louchheim, Othell Broger, and Jason Ghazvini, spoke at the annual Tallahassee Community Conference to provide an update on the Tallahassee housing market. Below are some of the key takeaways from the panel, highlighting our area’s current buyer statistics, sales trends, and more.

Joy Blomeley: Understanding Buyer Demographics & Challenges

With over 17 years in real estate, Joy Blomeley is a second-generation broker and former president of the Tallahassee Board of Realtors. A Tallahassee resident for over 52 years, she brings unmatched local expertise.

Blomeley provided valuable insights into the demographics of today’s homebuyers and their specific needs:

• Baby Boomers, making up 31% of the market, are focused on active lifestyles and accessible single-story homes due to health considerations. They are financially stable but find current home prices shocking compared to their past experiences.
• Generation X is juggling responsibilities with both returning children and aging parents. They seek homes that accommodate multi-generational living and are financially secure but desire thoughtful floor plans.
• Millennials, representing the largest segment of buyers at 38%, are heavily impacted by interest rates and often prefer move-in-ready homes. They generally lack the time or inclination for DIY repairs and are not as concerned with large lot sizes.
• Gen Z, while currently a smaller segment at 3%, is expected to grow. They are resourceful and creative, often sharing housing costs with roommates to manage high prices and interest rates.

Steven Lockheim: Real Estate Market Update

Steven Louchheim is the Chief Executive Officer of the Tallahassee Board of Realtors, where he oversees governance, finance and budgets, governmental affairs, and staffing for TBR and CATRS.

Lockheim offered a comprehensive overview of the current real estate market, focusing on Tallahassee. The city is experiencing a low supply of homes, with only a three-month inventory compared to a balanced market of six months. This shortage has driven up median house prices, presenting affordability challenges for buyers.

Interestingly, while the list price vs. sale price disparity was significant during the 2021-2023 period, it has slightly decreased recently. Homes are now taking longer to sell than they did during the pandemic—a positive development indicating a more stable market.

He also touched on recent changes brought about by the National Association of Realtors (NAR) settlement. These include new regulations affecting Realtors, such as the prohibition of posting compensation amounts in the Multiple Listing Service (MLS). For buyers, the introduction of a buyer’s agreement outlines the payment structure for real estate deals, which could be a new concept for many in our local market, but common in other markets across the nation.

Othell Broger: Emerging Consumer Trends

Othell Broger, a former U.S. Army member, is the Broker Owner of Broger Real Estate Services Inc. and currently serves as the president of the Tallahassee Board of Realtors.

Broger discussed evolving consumer preferences in real estate. Key trends include a growing demand for flex spaces and well-designed pantries, alongside modern aesthetics such as seamless bathroom tiles that eliminate grout lines. 

One significant shift is the desire for properties that offer both work and living spaces, with amenities like community pools within walking distance. The trend toward indoor-outdoor living spaces is also on the rise, with back patios becoming extensions of the home's living area.

Broger also highlighted the potential for insurance deductions through certain home renovations. Homeowners should review their insurance policies carefully, as coverage levels vary and some renovations may lead to financial benefits.

Jason Ghazvini: Tallahassee Construction & Development Update

Jason Ghazvini, a Florida State University graduate with a degree in Finance and a minor in Real Estate, has extensive experience in commercial construction, site development, and land use management.

Ghazvini gave an update on Tallahassee’s construction landscape. The city has seen a decrease in residential building permits year over year, with new projects primarily located on the east side of town. National developers like DR Horton are focusing on the southeast, but the city still lacks significant national developer presence, leading to higher costs for local builders.

The arrival of Greenpointe, a national developer, is anticipated to accelerate development in 2025, which should help address the current deficit of available lots. In the meantime, custom builders are turning to remodeling due to the limited availability of new lots.

The cost of new construction in Tallahassee stands at $243.94 per square foot, higher than other areas like Panama City Beach. There is a need for more developers to speed up permit processes to improve housing availability. On the affordable housing front, Leon County has three applications for multi-family projects, with the South City Community being a notable new addition.

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Each panelist provided crucial insights that will help stakeholders navigate the evolving real estate market. From market conditions and consumer preferences to construction updates, staying informed is key to making strategic decisions in today’s dynamic real estate environment!