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Central Avenue, Lakeland: Rising Home Values and Shifting Ownership in a Historic 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
Central Avenue, a neighborhood in Lakeland, Florida, has experienced significant changes in its housing market and demographics over the past decade. The area has seen a notable shift from homeownership to renting, accompanied by substantial increases in home values and rent prices.
From 2013 to 2022, Central Avenue witnessed a decline in homeownership rates, dropping from 57% to 48%. This decrease coincided with a remarkable 397% increase in average home prices, rising from $36,246 in 2013 to $180,431 in 2022. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Central Avenue. Between 2013 and 2016, interest rates remained low, ranging from 0.11% to 0.40%, and homeownership rates stayed relatively stable at 56-57%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply to 48%. This trend aligns with the principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in Central Avenue increased from 42% in 2013 to 52% in 2022. This shift towards renting was accompanied by a 19% rise in average rent prices, from $759 per month in 2013 to $903 in 2022. The growth in the renter population and average rent prices suggests increasing demand for rental properties in the neighborhood, possibly driven by those priced out of the homeownership market.
In 2023 and 2024, the housing market in Central Avenue continued to evolve. The average home price reached $188,713 in 2023 and further increased to $191,570 in 2024, indicating ongoing appreciation in property values. Federal interest rates also saw significant increases, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may further impact homeownership trends in the neighborhood.
Predictive models suggest that average home prices in Central Avenue may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties. However, the rate of increase may moderate if economic conditions stabilize.
In summary, Central Avenue has experienced a significant shift from homeownership to renting over the past decade, driven by rapidly appreciating home values and fluctuating interest rates. The neighborhood's housing market has demonstrated remarkable resilience and growth, with average home prices nearly quintupling between 2013 and 2024. As the area continues to evolve, the interplay between home prices, rent rates, and broader economic factors will shape its residential landscape in the coming years.
