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Airport North: Rising Home Values and Dynamic Market in Orlando's Airport Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Airport North, a vibrant neighborhood in Orlando, Florida, has experienced significant changes in its housing market over the past decade. This area, characterized by its proximity to Orlando International Airport, has seen notable shifts in homeownership rates and housing prices.
From 2013 to 2022, homeownership in Airport North increased from 27% to 30%, coinciding with a substantial rise in average home prices. The average home value grew from $74,032 in 2010 to $267,804 in 2022, representing a remarkable 261% increase. The most significant year-over-year increase occurred between 2021 and 2022, with average home prices surging by 27.4% from $210,151 to $267,804. This rapid appreciation in home values likely contributed to a slight decrease in homeownership from 31% in 2021 to 30% in 2022, as affordability became a challenge for potential buyers.
Federal interest rates have played a crucial role in shaping homeownership trends in Airport North. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.4%, coincided with a gradual increase in homeownership from 27% to 35% between 2013 and 2020. However, as interest rates began to rise in 2022 to 1.68%, a slight decline in homeownership to 30% was observed, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages in Airport North have remained relatively stable, fluctuating between 65% and 72% from 2013 to 2022. Average rent prices have shown a general upward trend, increasing from $1,133 in 2013 to $1,235 in 2022, a 9% rise over the decade. A significant jump in average rent from $1,226 in 2020 to $1,347 in 2021, a 9.9% increase, may be attributed to the growing population and increased demand for rental properties. The population growth from 14,055 in 2020 to 15,072 in 2022 likely contributed to the sustained high renter percentage and upward pressure on rent prices.
In 2023 and 2024, Airport North continued to see growth in average home prices, reaching $286,160 in 2023 and $294,083 in 2024. This represents a 6.9% increase from 2022 to 2023 and a further 2.8% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may have impacted homebuying decisions and potentially slowed the rate of price appreciation.
Based on historical data and recent trends, projections suggest that average home prices in Airport North may continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $350,000 to $375,000, assuming a conservative annual growth rate of 3-5%. Average rent prices may also continue to rise, potentially reaching $1,400 to $1,500 per month within the next five years, driven by population growth and housing demand in the area.
In summary, Airport North has experienced significant growth in both population and housing values over the past decade. The neighborhood has maintained a high proportion of renters while seeing moderate increases in homeownership rates. The substantial appreciation in average home prices, coupled with rising interest rates, may continue to shape the housing market dynamics in this Orlando neighborhood, potentially favoring a strong rental market while presenting challenges for first-time homebuyers.
