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Atlantic Beach: Rising Home Values and Ownership in a Coastal Town
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
Atlantic Beach, a town in North Carolina, has experienced significant changes in its housing market over the past decade. This coastal community has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Atlantic Beach has shown an upward trend, increasing from 61% in 2013 to 68% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $262,152, which steadily rose to $504,634 by 2022, representing a 92.5% increase over this period. This trend suggests a strong correlation between rising home values and increased homeownership, possibly indicating growing confidence in the local real estate market.
Federal interest rates have played a significant role in shaping homeownership trends in Atlantic Beach. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates fluctuated between 53% and 61%. As interest rates began to rise more substantially from 2017 (1.00%) to 2019 (2.16%), homeownership rates paradoxically increased from 60% to 66%. This trend continued into 2020 and 2021, with homeownership reaching 71% in 2021 despite the economic uncertainties of the pandemic period.
The percentage of renters in Atlantic Beach has generally decreased over time, from 39% in 2013 to 32% in 2022. Average rent prices have shown significant volatility during this period. In 2013, the average rent was $1,490, which peaked at $2,135 in 2015 before gradually declining to $959 in 2022. This decrease in average rent prices, coupled with the declining renter population, suggests a shift in the local housing market dynamics, possibly driven by increased homeownership opportunities or changes in the town's demographic composition.
In 2023 and 2024, Atlantic Beach continued to see growth in average home prices, reaching $524,037 in 2023 and $539,253 in 2024. This represents a further 6.9% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership trends and mortgage affordability.
Looking ahead, predictive models suggest that average home prices in Atlantic Beach may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been declining, might stabilize or see modest increases as the rental market adjusts to changing demand and supply dynamics.
In summary, Atlantic Beach has experienced a notable increase in homeownership rates and average home prices over the past decade, while seeing a decline in the renter population and average rent prices. The interplay between these factors, along with broader economic conditions such as interest rates, has shaped the town's housing market. As Atlantic Beach moves forward, these trends will likely continue to evolve, influenced by both local and national economic factors.
