St. Petersburg’s economy stands at a crossroads, characterized by gains and losses that reveal an evolving landscape. While the workforce has seen a significant decline alongside a sharp drop in job creation, property tax revenues and new construction values continue to ascend. This phenomenon paints a nuanced picture of an economy in transition.
Recent revitalization efforts, particularly in historically underserved areas of South St. Petersburg, have yielded promising results. Even though unemployment has seen a slight uptick, it remains low. It’s noteworthy that the Tampa Bay Rays, once among the city’s key employers, have withdrawn from their role in shaping the local economy. The lingering ramifications of the recent hurricane season pose further uncertainties.
At the May 20 State of the Economy event, city officials expressed cautious optimism about St. Petersburg’s economic trajectory. Mayor Ken Welch highlighted the city’s growing focus on tech and innovation which, he noted, attracts a higher earning demographic to the area. This influx, however, has skewed the local housing market, complicating affordability. “We have to put more into truly affordable housing,” Welch urged, recognizing the interconnectedness of these issues. Despite the challenges, he conveyed a positive outlook: “The story on St. Pete is out. It’s a good story, and folks still want to move here.”
Population dynamics in St. Petersburg reflect a complex narrative. In 2024, the city experienced a modest population increase of 0.47%, a stark contrast to the post-pandemic high of 1.32% in 2022. Interestingly, Pinellas County registered its first population decline in five years, showing a decrease of 0.36%. Yet, since 2020, St. Petersburg’s population has grown by 3.38%, with nearly one-third of all Pinellas residents now residing within city limits.
In terms of cost of living, Tampa Bay remains relatively affordable compared to the national average, though it edges higher than nearby Orlando. Mayor Welch emphasized that, despite facing several challenges over the past year, a growing population could help lower the average cost of living and position St. Petersburg for a robust recovery.
Welch expressed pride in how St. Petersburg has shed its “sleepy image of heaven’s waiting room,” emerging instead as one of the nation’s most desirable places to reside. This positive transformation is fueled by smart, inclusive growth that resonates throughout the community.
The economic indicators in the South St. Petersburg Community Redevelopment Area (CRA) further support the mayor’s sentiment. Taxable values in this area have increased by an impressive 15.4% since 2020, reaching $2.3 billion. This surge surpasses the city’s average by 4.8%. Brian Caper, the city’s economic and workforce development director, explained that these tax values fund initiatives such as down-payment assistance, small business support, and subsidies for affordable housing.
Contrary to concerns about gentrification in historically Black neighborhoods, Mayor Welch believes that the CRA’s timing was fortuitous. “It has funded so much in affordable and workforce housing and job training,” he added. The city is focused on ensuring that the benefits of growth are shared broadly.
Downtown St. Petersburg is a critical driver of economic growth, catalyzing job creation and investment. Raymond James Financial tops the list of taxpayers, contributing significantly to the city’s tax revenue, while ongoing downtown developments follow closely behind. These projects are financially impactful, generating higher tax revenue per acre, which further enables the funding of new initiatives throughout the city.
In 2024, St. Petersburg experienced a record-setting $1.4 billion in construction value, with over 35,000 permits issued. Despite hurricane-related damage, much of this activity took place in early 2025, contributing to the city’s ongoing development.
Nevertheless, job growth has taken a hit, sliding by 3% in 2024 after notable increases in the previous years. In contrast, Florida saw only a slight decline in job creation of 0.04%. Pinellas County fared worse, experiencing a 5.56% drop in employment. Caper attributes this downturn to several factors, including heightened living costs, economic uncertainties linked to the election cycle, and the impact of the hurricane season.
The Tampa Bay Rays have notably dropped from a prominent position in the local employment landscape. Once a key player, the team has withdrawn from plans to lead the redevelopment of the Gas Plant area into a vibrant mixed-use community, leading them to be ranked as only the tenth largest employer in St. Petersburg, with around 4,000 employees. In their absence, organizations like Raymond James, Charter Communications, and Jabil have taken center stage.
Russell Williams, director of recruiting and talent strategy at Power Design, stressed the importance of integrating public-private partnerships to enhance the local workforce. He believes that the company’s success reflects St. Petersburg’s broader success story, emphasizing the firm’s commitment to sustainable and inclusive growth.
Amid these shifts, the city also remains optimistic about new opportunities. The relocation of Foot Locker to St. Petersburg is projected to generate 150 high-paying jobs, showcasing the potential for future economic growth, even in a changing landscape.
After the recent economic event, Mayor Welch reiterated plans for the redevelopment of the Gas Plant area, which includes Tropicana Field. Despite the Rays’ exit, upcoming projects include the construction of approximately 100 affordable housing units and a new home for the Woodson African American Museum of Florida, along with workforce development initiatives.
While the job landscape may not see an immediate spike comparable to what a new stadium could have provided, Welch emphasized that job creation will emerge from ongoing development in the historic Gas Plant area. He reassured the community, “We’re going to train up people for those jobs that are coming within three years.”
Overall, St. Petersburg’s economic journey illustrates the delicate balance of gains and losses. As the city embraces innovation and inclusive growth, it faces the challenge of adapting to change while ensuring that all residents benefit from the prosperity it seeks to generate. With concerted efforts in affordable housing and workforce development, St. Petersburg is carving out a path toward a brighter economic future.
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