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Biloxi's Rising Home Values and Homeownership: A Coastal City's Real Estate Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Biloxi, a vibrant coastal city in Mississippi, has experienced significant demographic and housing market shifts over the past decade. Known for its beautiful beaches and thriving casino industry, Biloxi has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Biloxi has shown a gradual decline followed by a recent uptick. In 2013, the city had a 50% homeownership rate, which decreased to 44% by 2018. However, there has been a reversal of this trend in recent years, with homeownership rising to 51% in 2022. This change coincides with fluctuations in average home prices, which have generally trended upward over the same period.
Average home prices in Biloxi have shown substantial growth, particularly in recent years. In 2013, the average home price was $124,440, which increased to $159,251 by 2019, representing a 28% rise over six years. The market then experienced a more rapid appreciation, with prices jumping to $211,732 in 2022, a further 33% increase in just three years. This significant price growth may have influenced homeownership rates, as rising prices can make purchasing a home more challenging for some buyers.
Federal interest rates have played a crucial role in shaping homeownership trends in Biloxi. From 2013 to 2015, interest rates remained extremely low, hovering around 0.1-0.13%. This period coincided with relatively stable homeownership rates. As interest rates began to rise more significantly from 2016 onwards, reaching 2.16% in 2019, we observed a slight decline in homeownership percentages. However, the sharp drop in interest rates to 0.08% in 2021 likely contributed to the subsequent increase in homeownership, as lower rates typically make mortgages more affordable.
Renter percentages in Biloxi have generally mirrored the inverse of homeownership trends. The renter-occupied housing percentage increased from 48% in 2013 to a peak of 53% in 2018, before slightly declining to 49% in 2022. Average rent prices have shown an overall upward trend, rising from $950 in 2013 to $1,055 in 2021, a 11% increase. However, there was a notable decrease to $925 in 2022, which could be attributed to various factors including increased housing supply or economic conditions affecting the rental market.
The most recent data for 2023 and 2024 shows continued growth in average home prices, reaching $215,485 in 2023 and $219,435 in 2024. This represents a modest but steady increase of about 1.8% and 3.6% respectively from the 2022 figures. Interestingly, federal interest rates have also seen a significant rise, jumping to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in Biloxi.
Looking ahead, predictive models suggest that average home prices in Biloxi may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $235,000 to $245,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,100 to $1,200 per month by 2029, assuming continued population growth and economic stability in the region.
In summary, Biloxi's housing market has demonstrated resilience and growth, with rising home prices and a recent uptick in homeownership rates. The interplay between federal interest rates, housing prices, and rental trends continues to shape the city's real estate landscape. As Biloxi moves forward, the balance between homeownership and renting will likely remain dynamic, influenced by economic factors, population growth, and local market conditions.
