Arcadia, a charming city in Florida with a population of 12,824 in 2022, has experienced notable shifts in its housing landscape over the past decade. The overall trend shows a gradual decrease in homeownership, accompanied by substantial increases in average home prices and fluctuating average rent prices. From 2013 to 2022, the homeownership rate in Arcadia declined steadily. In 2013, 70% of residents owned their homes, but by 2022, this figure had dropped to 63%. Conversely, average home prices have seen a remarkable upward trajectory. In 2013, the average home price was $81,179, which more than tripled to $240,557 by 2022. This inverse relationship suggests that rising home prices may have contributed to the decline in homeownership rates, potentially pricing out some would-be buyers.

Federal interest rates have played a significant role in shaping homeownership trends in Arcadia. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates remained relatively stable, fluctuating between 64% and 71%. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), we observed a corresponding decline in homeownership rates to 63% in 2022.

The renter population in Arcadia has grown from 30% in 2013 to 37% in 2022, mirroring the decline in homeownership. Average rent prices have shown some volatility but an overall upward trend. In 2013, the average rent was $732, which increased to $760 by 2017. However, there was a notable dip to $686 in 2018 before rising again to $728 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a dynamic rental market responding to changing demand and economic conditions.