Weekly Special | February 5, 2024
Smaller Homes Are Least “Affordable”
Segmenting the Tallahassee housing market by home size ranges reveals a spiraling home-affordability crisis.
Instead of arguing the unaffordability of all home sizes, let’s focus on the least affordable segment. The data clearly indicates that homes ranging from 1,000 to 1,499 square feet have seen their prices skyrocket more rapidly than any other category since the housing market began its recovery in 2012.
So, how rapid is this appreciation?
A home valued at $200K in 2012 now sells for $430K, whereas a home of the same value in 2019 now commands a price of $302K (an annualized rate of nearly 11%!). Are these price increases sustainable?
Rising inflation has significantly increased new construction costs, leading to a scarcity of new homes on the market.
Smaller homes, in particular, have borne the brunt of this trend recently.
The original one-page Weekly Special PDF is still available.
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