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Cocoa Beach: Rising Home Values and Ownership Trends in a Coastal Florida City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cocoa Beach, a vibrant coastal city in Florida with zip code 32931, is renowned for its beautiful beaches and proximity to the Kennedy Space Center. This analysis explores the city's housing market dynamics, focusing on homeownership rates, average home prices, and average rent prices from 2010 to 2024.
The homeownership rate in Cocoa Beach has shown a significant upward trend, increasing from 67% in 2013 to 76% in 2022. This rise in homeownership coincides with a substantial increase in average home prices, which grew from $231,795 in 2010 to $487,961 in 2022, representing a 110.5% increase over 12 years.
The relationship between federal interest rates and homeownership rates in Cocoa Beach appears to follow the general trend of lower interest rates encouraging higher homeownership. For instance, as interest rates remained low from 2013 to 2015 (averaging around 0.11%), homeownership rates held steady at around 64-67%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates continued to climb, reaching 76% in 2022. This suggests that other local factors, such as the desirability of the area, may have played a significant role in driving homeownership despite rising interest rates.
The percentage of renters in Cocoa Beach has decreased from 33% in 2013 to 24% in 2022, inversely mirroring the rise in homeownership. Despite this decrease in the renter population, average rent prices have shown a steady increase. The average rent rose from $1,174 in 2013 to $1,356 in 2022, an increase of 15.5% over nine years. This upward trend in rent prices, despite a decreasing renter population, suggests a strong demand for rental properties in the area, possibly driven by tourism or seasonal residents.
In 2023 and 2024, the housing market in Cocoa Beach continued its upward trajectory. The average home price reached $502,051 in 2023 and further increased to $506,447 in 2024, representing a 2.9% and 3.8% increase from 2022, respectively. This growth occurred despite federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, indicating the robust nature of Cocoa Beach's housing market.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Average home prices are projected to potentially reach around $550,000 to $600,000 by 2029, assuming a similar growth rate. Average rent prices could potentially increase to approximately $1,500 to $1,600 per month in the same period.
In summary, Cocoa Beach has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. Despite a decreasing renter population, average rent prices have continued to rise, indicating strong demand for both owned and rented properties. The resilience of the housing market, even in the face of rising interest rates, suggests that Cocoa Beach remains an attractive location for both residents and investors.
