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Atlantic Highlands: Rising Home Values and Shifting Ownership Trends in a Coastal Jacksonville 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
Atlantic Highlands, a neighborhood in Jacksonville, Florida, has experienced significant changes in its housing market and demographic composition over the past decade. This area has seen a notable shift in homeownership rates and substantial increases in property values. The neighborhood has witnessed a general decline in owner occupancy, while average home prices have shown a significant upward trend. Average rent prices have also generally increased over time, despite some fluctuations.
The homeownership rate in Atlantic Highlands has declined from 66% in 2013 to 58% in 2022, coinciding with a substantial increase in average home prices. In 2013, the average home price was $253,769, which rose dramatically to $539,864 by 2022, representing a 112.7% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents. Notably, the steepest increase in average home prices occurred between 2020 and 2022, with a 40% jump from $385,698 to $539,864 in just two years.
Federal interest rates have played a significant role in shaping homeownership trends in Atlantic Highlands. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 62% to 66%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates declined from 64% to 58%. This trend aligns with the general understanding that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Atlantic Highlands has grown from 34% in 2013 to 42% in 2022, mirroring the decline in homeownership. Average rent prices have shown some volatility but have generally increased over time. In 2013, the average rent was $1,312, which rose to $1,422 by 2021, representing an 8.4% increase. However, there was a notable decrease to $1,226 in 2022, possibly reflecting market adjustments or changes in rental inventory. The increase in the renter population, from 1,346 renters in 2013 to 1,687 in 2022, may have contributed to the overall upward pressure on rent prices despite the recent decrease.
In 2023 and 2024, Atlantic Highlands continued to see growth in average home prices. The average home price reached $566,521 in 2023 and further increased to $582,927 in 2024, representing a 2.9% year-over-year increase. This growth occurred despite federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007. These high interest rates could potentially slow down the pace of home price appreciation in the coming years.
Looking ahead, predictive models suggest that average home prices in Atlantic Highlands may continue to rise over the next five years, but at a more moderate pace due to the current high interest rate environment. Average home prices could potentially reach around $650,000 to $700,000 by 2029. Average rent prices are also expected to increase, possibly reaching $1,500 to $1,600 per month by 2029, driven by the growing renter population and overall housing demand in the area.
In summary, Atlantic Highlands has experienced a shift towards a higher proportion of renters, coupled with substantial increases in average home prices. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends. As the neighborhood continues to evolve, it's likely to see further increases in both home prices and rents, albeit at a potentially slower rate due to current economic conditions.
