Human ROI: St. Pete’s economic outlook swaps statistics for soul
- Mark Parker
- Jun 4
- 4 min read
Typical data points - like a record $1.4 billion in construction value and an 18% spike in median household income - highlight St. Petersburg’s recent successes, despite ongoing economic headwinds.
However, the narrative seemed to shift away from traditional metrics at the 2026 State of the Economy. Much of the event, held on Wednesday at the Mahaffey Theater, instead focused on the city’s human capital.
Perhaps the most compelling moment came not from the data slides but from the personal testimony of Pat Mack, CEO of data analytics firm PVM. His story highlighted that St. Petersburg’s true economic engine is the "sum of the bets that it makes on its own people.”
Mayor Ken Welch kicked off the event by stating that the city, while facing nationwide economic challenges, remains focused on promoting inclusive growth. He listed the city’s recent accolades but noted that “we are not satisfied.”
“We always want to get better, to achieve more,” Welch said. “We continue to focus on the work that drives progress, ensuring every resident in every neighborhood feels this momentum and has the opportunity for a great quality of life.”
City Council Chair Lisset Hanewicz told attendees that while economic statistics matter, “they do not tell the whole story.” Instead, she said stakeholders should ask, “What makes our economy work?”
The answer is small business owners, anchor institutions, neighborhood associations, business districts, and families that see a future in St. Petersburg, Hanewicz said. “An economy works when people believe a place is worth investing in with their time, their talent, their savings.”
“Local government cannot control interest rates, insurance costs, global supply chains, inflation, or the weather,” Hanewicz added. “But we do shape conditions that help determine whether people and businesses can succeed despite those challenges.”
St. Petersburg’s new Legacy Business Program, which showcases establishments that have contributed to the city for over 20 years, proves that economic success is not defined by “what is new or high-profile,” Hanewicz said. Investments in initiatives like St. Pete Works: EDGE ensure that underserved residents can access in-demand skills and training.
The new three-year, $6 million workforce development initiative is led by St. Petersburg College. Program partners, including the St. Petersburg Area Chamber of Commerce, Career Source Tampa Bay, and the Pinellas County Urban League, plan to connect hundreds of South St. Petersburg Community Redevelopment Area (CRA) residents with opportunities in target industries.
While the soul of St. Petersburg’s economy took center stage, the statistics remain formidable. The city’s taxable value has more than doubled - from $15 billion to $36 billion - over the last decade, reflecting an unprecedented growth trajectory.
South St. Pete has also benefited from the city’s growth, as taxable values within the CRA soared from $1.1 billion to $2.5 billion since 2020. The city can only reinvest that revenue, which will continue increasing as several new projects are completed, into the surrounding area.
Building officials issued over 54,000 permits, representing a record $1.4 billion in construction value in 2025. “Some of the increase in permit volume can be attributed to the large number issued to homeowners and businesses who experienced damage during Hurricanes Helene and Milton,” said Andrea Falvey, economic development manager.
Employment in St. Petersburg has increased by over 10.9% since 2020. However, officials did not provide year-over-year data, as they did during the 2025 event.
The city’s unemployment rate was 3.6% in 2025, below the national average of 4.3%. Median household income rose 18.5% over the last five years, and 58.6% over the past decade.
Although affordability remains a concern for many residents, City Development Administrator James Corbett noted that Tampa Bay’s cost of living index is “very much in line with or favorable compared to other metro areas,” including Miami, New Orleans, and Nashville.
Public funding helped create 457 new affordable housing units last year, with 66% serving residents earning up to 80% of the area median income (AMI). The remaining 34% were capped at 120% of the AMI - $96,360 for one person.
Corbett noted that St. Petersburg’s population has increased by 3% since 2020. However, it may have plateaued at approximately 266,000 residents, roughly the same total as in 2023 and 2024.
Mack, who grew up in South St. Pete before a decorated, two-decade career in the U.S. Navy, brought the event to a close by emphasizing the importance of investing in people. He founded PVM in 2011 while living in San Diego, and could have built the company “anywhere in this country.”
“I chose here, the place that built me,” Mack continued. “When a city bets on a kid, when it bets on someone the world was ready to overlook and decides that the person has potential, the bet comes home. The bet forms the roots for the State of the Economy.
“The next chapter doesn’t belong to me - it belongs to that kid. And the only job, literally the only job any of us in this room really have, is to keep the door open. So when that kid is ready to walk through it, they can.”
To view the presentation slides, visit the website here.
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