Leon County home prices and values are rising in the resale market. That is encouraging for homeowners, but it does not mean every house has gained the same amount. Buyers are purchasing larger homes, and that helps push sale prices higher. New construction tells a different story: buyers are spending more overall while paying less for each square foot.
- Resale sellers are receiving more, but the larger size of homes sold explains part of the price increase.
- New homes remain larger than resales, leaving buyers who need a smaller home with fewer new-home choices.
- Small new homes were a regular part of this market decades ago. Their sales have not recovered with the rest of the market.
- Buyers of larger new homes are paying less. Changes in location and size explain some of that decline, and some builders appear to be accepting less profit.
Here is the distinction I use when reading these numbers: Price tells us what buyers spend; value tells us what sellers receive. We measure value (price per square foot) to see what buyers paid for the home’s living space. For new homes, this is the buyer’s cost, not the builder’s cost to build.
This Tallahassee real estate report covers detached homes in Leon County, using January through August in each year. It draws on records from the Leon County Property Appraiser and the Tallahassee Board of REALTORS® MLS. We keep new homes separate from resales because combining them can hide what is happening in the market where most homeowners will sell.
Leon County Home Prices and Values Tell Two Stories
Resale prices and values have both risen. New-home buyers, however, are spending more on the whole house while paying less for its living space.
The median resale price rose from $334,900 last year to $350,000 this year. Median means the middle sale: half sold for more and half for less. It gives us a useful view of the market without letting one very expensive sale dominate the result.
But the house in the middle can change. If buyers purchase more large homes, the median price can rise without every home becoming more valuable. A homeowner who adds that countywide increase to an asking price could miss what buyers will actually pay for that property.
Resale values also rose, although by less than prices. That gives sellers a stronger signal than rising prices alone. Buyers spent more overall, and sellers received slightly more for each square foot. The next question is how much of the change came from the size of the homes sold.
New construction makes this distinction easy to see. Its median price rose from about $425,800 to $440,200, while median buyer cost fell from about $243 to $239 per square foot. Buyers spent more money, but they got more living space for each dollar.
This is why I look at Leon County home prices and values together. A price headline tells us what buyers spent. It takes more work to decide what that means for a home you own or want to buy. My guide to using value when pricing a home explains why location, size and features belong in that comparison.
For sellers, the best starting point is the homes a buyer would consider alongside yours. A countywide trend provides context. The competing homes help you choose an asking price that buyers can justify.
Buyers Are Purchasing Larger Resale Homes
The homes selling in the resale market have grown larger each year in this comparison. New-home size has moved up and down, but it remains above resale size.
The median resale home sold this year had 1,778 square feet, up from 1,700 last year. That increase helps explain why buyers spent more. They were purchasing more house.
It does not necessarily mean buyers have decided they want larger homes. Fewer smaller homes selling can raise the median just as surely as more larger homes selling. The reason smaller homes sell less often matters a great deal to someone trying to buy one.
My concern is the pressure on the lower end of the market. Too few suitable homes limit a buyer’s choices. Preparing for home financing matters too, because the loan payment limits what that buyer can purchase. Together, those problems can slow smaller-home sales while buyers with larger budgets remain more active.
A family working with a modest budget needs more homes within reach. Our mortgage calculator helps translate an asking price into a monthly payment. When smaller homes are scarce, some buyers cannot find a home they can afford. Their absence from the sales totals can help push the median size higher.
New-home size declined for two years before rising to 1,873 square feet this year. That is still below its 2023 level. The lasting issue is the gap between new homes and resales: even at their smallest point in this comparison, new homes sold were larger than today’s typical resale.
In my view, new construction has not moved far enough toward the smaller homes our market needs. Builders have sold smaller homes at times, but the overall offering still leaves a gap for buyers seeking an affordable first purchase or a less expensive move.
A small home is not automatically affordable. Land, finishes and financing all matter. Include principal, interest, taxes and insurance when comparing payments. The Consumer Financial Protection Bureau’s Loan Estimate guide shows where to find those costs. For context on how borrowing costs have changed, Freddie Mac’s mortgage-rate history is a useful reference; your own loan quote is what matters for your budget. Still, building more space adds cost that a buyer must cover. A household that needs less house should have meaningful options to buy it.
Buyers can compare locations with our Tallahassee ZIP code guide. The goal is to find a home and area that fit the budget, then compare the choices available there.
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Where Did the Small New Homes Go?
Looking back to 1990 shows that small new homes were selling well before the housing boom. Their recent scarcity is part of a much longer change.
Homes under 1,250 square feet once accounted for a meaningful part of new-home sales. They were not just a brief feature of the mid-2000s boom. The earlier years show buyers purchasing them long before that surge.
The downturn affected every size group. What stands out is how little the smallest homes recovered afterward. Other groups regained some sales during the recovery, while the smallest remained scarce.
The chart compares the period through June 2007 with the period beginning in July 2007. It adjusts for the different lengths of those periods so the comparison reflects sales pace, not simply which period lasted longer.
Sales of the smallest new homes fell about 84% on that basis. The other size groups fell roughly 39% to 58%. New-home sales are lower across the board, but the smallest homes have lost the most ground.
For someone looking for an affordable new home, the result is practical. A smaller floor plan that might once have been a normal choice is now much harder to find. Buyers can look at resales, expand their search area or change their budget, but none of those choices creates the new home they were hoping to buy.
For a national comparison, the Census Bureau’s Characteristics of New Housing offers information on new-home sizes and features. It helps put the local picture in context without assuming every market is alike.
The long view also changes the question we should ask about affordability. It is not enough to ask whether this year’s new homes are smaller than last year’s. We should ask whether buyers have enough choices at the smaller end of the market.
Larger New Homes Show the Biggest Price Change
Leon County home prices changed only modestly in most size groups. New homes with at least 2,500 square feet are the clear exception.
The median purchase price for these larger new homes fell from $755,450 to $600,423, a drop of about 20.5%. The average price also fell, by 12.2%. Both measures point to lower buyer spending.
Before reading too much into that change, we looked at the number of sales. There were 39 last year and 38 this year. This was not a case of comparing a busy year with only a handful of recent sales.
We then looked at where the homes sold. Southeast Tallahassee accounted for more of this year’s purchases. Those homes helped lower the overall price, so location explains part of the decline.
Size also changed within this group. A home with roughly 2,570 square feet and one with roughly 3,450 square feet both fall into the 2,500-and-up category. Selling more of the smaller models can bring down the average price even when prices for a particular model change very little.
But that was not the whole explanation. We also found examples of similar large models selling for less. Based on those examples and my experience in this market, some builders appear to be accepting less profit.
Builders can respond in other ways too. Simpler trim, different kitchen finishes or fewer included features may help bring the price down. Some buyers may prefer that trade if it gets them into the home and location they want. When building a home, get the included features spelled out in the construction contract so you know what the price covers.
For a buyer, the next step is to compare the full package. Our guidance on buying new construction with your own representation explains how to get help evaluating the builder’s offer. What does the price include? Is the lot similar? Are the kitchen, flooring and other finishes the same? A lower price is more useful when you know what changed with it. If you plan to build rather than buy a finished home, consider how the lot fits the floor plan before choosing either one.
Our discussion of buying a new home now or waiting for lower prices offers more context for that decision. Your own budget and the available homes matter more than trying to guess the perfect moment for the whole market.
What Leon County Home Values Mean for Sellers
Resale values rose in every size group. Among new homes, the largest homes showed the biggest decline in what buyers paid for each square foot.
Buyers of new homes with at least 2,500 square feet paid about 10% less per square foot this year. That adds to the price story. They paid less for the whole home and less for its living space.
A useful rule of thumb helps us read that change. When lots and features are similar, smaller homes should generally cost more per square foot. Both a large home and a small home need land, utility connections and other site work. The smaller home spreads those shared costs over fewer square feet.
Looking at Leon County home prices and values alongside home size helps reveal a stronger signal. Smaller homes should generally command more per square foot, all else equal. When both size and value fall, buyers are getting a better price for the space despite purchasing smaller homes.
We still need to compare similar properties. A waterfront lot is different from an interior lot. A pool, upgraded kitchen or premium location can change the result. The rule is useful because it tells us what to investigate; it does not replace looking at the homes themselves.
In this report, the resale and new-home results point in different directions. Resale sellers received more across every size group. Buyers of larger new homes received more space for their dollars, with changes in location, floor plans and possibly finishes affecting the comparison.
For buyers, that creates a reason to look closely at available larger new homes. It does not mean every builder or home offers the same opportunity. It means the broad decline is worth testing against the specific homes on your list. Compare the financing as carefully as the house. The CFPB’s guide to comparing loan offers helps you weigh the rate, lender credits and upfront costs together.
What This Means for Your Next Move
Leon County home prices and values give homeowners useful context, but the best decisions start with the home in front of you. Resale values have held up. Larger new homes show lower buyer spending and lower buyer cost. Some builders appear to be accepting less profit.
If you plan to sell a resale home, focus on what buyers can choose instead of yours. What you owe affects the money you take home, but it does not set the market price. Closing costs also affect that final amount. Our guide to selling a house explains how pricing and preparation work together. Our home marketing plan shows how we help the right buyers find your property.
If you plan to buy, compare the lot, floor plan, features and total cost before deciding that one home is a better deal. The lowest price is not always the best purchase, and the highest price does not always mean the strongest value.
Use these trends to ask better questions. Then use recent competing sales to answer them for your property. You can request a comparative market analysis or ask me about your situation for help applying these findings. That is how a housing report becomes useful to your next move.
Sources: Leon County Property Appraiser and Tallahassee Board of REALTORS® MLS. Data updated September 8, 2026. Comparisons use January–August sales in each year.
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