A complex economic landscape has unfolded in St. Petersburg, revealing a unique paradox where gains and losses coalesce to paint a multifaceted picture of the city’s current state. As we delve into the latest economic developments, it becomes evident that while certain indicators reflect growth, others reveal challenges that demand attention.
St. Petersburg has experienced a sharp decline in its workforce, a trend that mirrors a significant drop in job creation within the city. This is particularly noteworthy against the backdrop of soaring property tax revenues and considerable new construction values. Despite the precarious nature of the job market, revitalization efforts in historically underserved areas of South St. Petersburg are beginning to yield positive results. The unemployment rate has remained low, even as there has been a slight uptick, highlighting both resilience and the need for continued growth.
Notably, the Tampa Bay Rays are no longer listed among St. Petersburg’s top employers, a development that may have long-term repercussions on the local economy, especially following an unprecedented hurricane season. Yet, during a recent State of the Economy event, city officials expressed optimism about St. Petersburg’s trajectory. Mayor Ken Welch emphasized the city’s focus on technology and innovation, which attracts higher earners and impacts the housing market.
Welch underscored the pressing need for more truly affordable housing, acknowledging the interconnectedness of various economic levers. “The story on St. Pete is out. It’s a good story, and folks still want to move here,” he asserted. This sentiment is reflected in the data showing that St. Petersburg’s population grew by 0.47% in 2024, though this figure falls short of the post-pandemic high of 1.32%, reached in 2022. Conversely, Pinellas County saw a 0.36% population decline—the first decrease in five years—a trend warranting further scrutiny as the economic landscape shifts.
James Corbett, the city development administrator, noted that since 2020, St. Petersburg has experienced a population increase of 3.38%, with nearly one-third of Pinellas residents residing in the city. The cost of living in Tampa Bay remains lower than the national average, presenting a competitive edge over places like Orlando while standing on par with Austin. According to Corbett, consistent population growth will help lower living costs, positioning St. Petersburg for a robust recovery.
The economic growth in the South St. Petersburg Community Redevelopment Area (CRA) underscores the city’s positive trajectory. Taxable property values have surged by 15.4% since 2020, now totaling $2.3 billion, which is 4.8% more than the city’s average. This surge contributes crucial funding for various initiatives, including down-payment assistance, small business support, and subsidies for affordable housing.
Mayor Welch is optimistic that the influx of over $1 billion in new property tax values since 2020 does not signify gentrification in historically Black neighborhoods. Instead, he argues that targeted investments have helped fund essential programs like affordable housing and job training initiatives, ensuring that economic growth benefits the community.
Downtown St. Petersburg remains a driving force behind the city’s growth, with Raymond James Financial leading the taxpayer rankings at $130.37 million. Developments in the downtown area generate significantly higher tax revenue per acre compared to other regions, underscoring their importance in funding new projects around the city. With an impressive total of nearly $1.4 billion in construction value reported for 2024 and 35,000 permits issued, the city is witnessing a construction boom that is essential for economic revitalization, even as the impact of recent hurricanes lingers.
Unfortunately, job creation in St. Petersburg dropped by 3% in 2024, a stark contrast to the nearly 6% growth observed in 2021 and 2022. This decline exceeds the regional average, which saw only a 0.04% reduction in employment across Florida. The situation is compounded by a 5.56% job drop in Pinellas County, attributed to election-induced economic uncertainties, rising living costs, and new challenges from the ongoing hurricane season.
Crisis often breeds opportunity, however. Russell Williams, the director of recruiting and talent strategy at Power Design, emphasized the necessity of fostering public-private partnerships to cultivate the local workforce. Williams noted that St. Petersburg’s growth story relies heavily on collective efforts to propel economic advancement.
Looking ahead, the relocation of Foot Locker to St. Petersburg is anticipated to create 150 high-paying jobs, thanks to an incentive package, despite recent developments involving its acquisition by Dick’s Sporting Goods. The future of the Gas Plant, home to Tropicana Field, remains promising regardless of the current situation with the Rays. Mayor Welch reiterated plans to redevelop portions of the Gas Plant area, intended to prioritize affordable housing, a new site for the Woodson African American Museum of Florida, and a workforce development program.
While immediate job growth may not mirror the large-scale developments envisioned with the construction of a new stadium, efforts to revitalize the Historic Gas Plant area are expected to stimulate a steady influx of employment opportunities over the next few years. “We’re going to train people for the jobs that are coming within three years,” Mayor Welch stated, fostering hope for a brighter economic future.
In summary, the economic landscape of St. Petersburg is complex and evolving. While challenges such as declining job creation and a shrinking workforce exist, significant strides in business development, property value increases, and focused revitalization efforts in underserved areas reveal a city on the path toward recovery and growth. As St. Petersburg navigates its economic future, the interplay of investment, community engagement, and sustainable practices will likely define its trajectory in the years to come.
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