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Crescent Park: Rising Home Values and Ownership Trends in Orlando's Dynamic 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
Crescent Park, nestled in Orlando, Florida, is a dynamic neighborhood that has experienced notable shifts in its housing landscape over the past decade. This area has seen fluctuations in homeownership rates, coupled with significant changes in average home prices and average rent values. The neighborhood's character is marked by a recent trend towards increased homeownership and rising property values, reflecting broader economic patterns in the region.
The relationship between homeownership rates and average home prices in Crescent Park reveals an interesting pattern. In 2013, the homeownership rate stood at 50%, with an average home price of $224,751. As average home prices steadily increased, reaching $329,112 by 2019, homeownership rates fluctuated but ultimately rose to 53%. The most dramatic shift occurred between 2019 and 2022, where homeownership surged from 53% to 71%, coinciding with a steep climb in average home prices from $329,112 to $466,298. This trend suggests that despite rising prices, more residents were able to transition into homeownership, possibly due to factors such as increased local economic prosperity or changing demographics.
Federal interest rates have played a crucial role in shaping homeownership trends in Crescent Park. The period from 2013 to 2020 saw historically low interest rates, hovering between 0.08% and 2.16%. This environment of cheap financing likely contributed to the gradual increase in homeownership rates observed during this time. The sharp rise in homeownership from 53% in 2019 to 68% in 2020, despite the onset of the COVID-19 pandemic, may be attributed to the federal interest rate plummeting from 2.16% to 0.38%, making mortgages more affordable for many prospective buyers.
Rental trends in Crescent Park have shown an inverse relationship to homeownership rates. In 2013, the renter-occupied percentage was 49%, with an average rent of $1,230. As homeownership increased, the percentage of renters decreased, reaching a low of 28% in 2022. Interestingly, average rent prices have remained relatively stable, only increasing from $1,230 in 2013 to $1,371 in 2022, a modest 11.5% increase over nine years. This stability in rent prices, coupled with decreasing renter percentages, suggests that the neighborhood may be transitioning towards a more owner-occupied community.
Looking at the most recent data, average home prices in Crescent Park continued their upward trajectory, reaching $493,469 in 2023 and $509,272 in 2024. This represents a significant 9.2% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, standing at 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the rate of homeownership growth in the coming years, as higher borrowing costs may make purchasing homes less affordable for some residents.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Crescent Park will continue to rise, albeit at a more moderate pace due to the higher interest rate environment. Projections suggest that by 2029, average home prices could reach approximately $600,000 to $650,000, assuming a steady annual growth rate of 3-5%. Average rent prices are expected to follow a similar upward trajectory, potentially reaching $1,600 to $1,700 per month by 2029, based on historical trends and anticipated economic factors.
In summary, Crescent Park has undergone a significant transformation in its housing market over the past decade. The neighborhood has seen a substantial increase in homeownership rates, rising from 50% in 2013 to 71% in 2022, despite rapidly appreciating home values. This trend has been supported by a long period of low interest rates, which have only recently begun to rise. The rental market has conversely seen a decline in the percentage of renters, though average rent prices have remained relatively stable. Looking forward, while rising interest rates may temper the pace of homeownership growth, the overall trend of increasing property values and a shift towards an owner-occupied community is expected to continue, albeit at a more moderate rate.
