🏡 St. Petersburg, FL Residential Real Estate Market Update – May 2025
The St. Petersburg housing market continues to evolve in 2025, with new trends shaping how residents buy and sell homes in this dynamic coastal city. Known for its warm weather, vibrant downtown, and Gulf Coast charm, St. Pete remains one of Florida’s most desirable places to live.
In this update, we’ll take a closer look at home price trends, housing inventory, and economic factors currently shaping the local market.
📈 Home Prices: Growth Slowing but Still Positive
As of April 2025, the median home price in St. Petersburg is approximately $450,000, representing a 3.2% year-over-year increase.
While this is slower than the double-digit spikes seen in the past few years, it shows the market is stabilizing, not shrinking.
National average: +2.1% YoY
Florida statewide: +2.8% YoY
High-demand neighborhoods like Old Northeast, Kenwood, and Crescent Lake continue to attract strong buyer interest. Meanwhile, areas like Disston Heights and Meadowlawn are gaining attention from first-time buyers and investors.
🏠 Inventory: Easing Slightly, Still Tight
We’re seeing a gradual return of listings, with active inventory up 12% compared to last year. However, the market remains undersupplied:
Current months of supply: 2.7 months
Balanced market benchmark: 5–6 months
Homes now spend about 32 days on the market, compared to 27 days in 2024. Buyers are getting a little more breathing room, but homes priced well still move fast.
💼 Economic Trends Driving the Market
Mortgage rates have come down slightly, offering buyers a bit of relief:
Average 30-year fixed rate (May 2025): ~6.1%
Down from the 6.5–7% range seen in 2023 and early 2024
St. Pete’s job market remains strong, driven by healthcare, tech, tourism, and remote work. Highlights include:
Pinellas County unemployment: 3.4%
Continued migration from the Northeast and Midwest
Strong demand from millennials, Gen Z, and retirees
🏗️ New Construction & Neighborhood Development
New builds are on the rise, especially in the form of:
Luxury townhomes
Downtown condos
Infill development in existing neighborhoods
Neighborhoods like the EDGE District and Midtown are benefiting from city investment in infrastructure and green spaces, boosting both livability and home values.
🏘️ Investor Activity & the Rental Market
Investor demand has cooled slightly from its pandemic-era peak but remains solid, especially for:
Long-term rental properties
Multi-family homes
Average rent for a 2-bedroom apartment in St. Pete is now around $2,100, a modest 1.7% increase from last year.
This stabilization is nudging more long-term renters toward homeownership as they weigh the rent-vs-buy equation.
🔑 What This Means for Buyers
The 2025 market is still competitive, but less frantic than in recent years. Buyers should:
Be ready to act quickly on well-priced homes
Get pre-approved for financing
Work with a local Realtor to gain an edge
More listings and slightly better mortgage rates are giving buyers new opportunities—especially in the $350K–$500K range.
💰 What This Means for Sellers
It’s still a seller’s market—but pricing accurately is critical. Successful sellers are:
Strategically pricing based on recent comps
Investing in staging and presentation
Taking advantage of strong seasonal demand
Well-maintained, move-in-ready homes are still seeing strong offers, especially in high-demand neighborhoods.
🧭 Final Thoughts
The St. Petersburg housing market in 2025 is shifting toward greater balance. The explosive price gains of the early 2020s have slowed, but demand remains strong due to Florida’s enduring appeal, local economic strength, and lifestyle advantages.
With sunshine, culture, and coastline, it’s easy to see why St. Pete continues to attract both new residents and savvy investors.
Whether you’re looking to buy, sell, or invest, now is a great time to connect with a local expert and make your move with confidence.
Thinking about buying or selling in St. Petersburg? Let’s talk!
📞 727-251-4106
📧 Sean.TampaBayRealtorSean.com
💬 Or message me directly through the contact form!
