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Deerwood's Home Values Soar as Ownership Declines: A Decade of Change in Jacksonville's Real Estate
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
Deerwood, a neighborhood in Jacksonville, Florida, has undergone significant changes in its housing market from 2013 to 2022. This analysis explores the trends in homeownership, average home prices, and average rent prices during this period. The data reveals a notable shift from homeownership to renting, coinciding with substantial increases in property values. The homeownership rate in Deerwood has steadily declined from 56% in 2013 to 44% in 2022. Simultaneously, the percentage of renters increased from 40% to 56% during the same timeframe. This change in housing tenure occurred alongside a remarkable rise in average home prices, which grew from $172,455 in 2013 to $342,715 in 2022, representing a 98.7% increase over nine years. An inverse correlation between homeownership rates and average home prices is evident in Deerwood. As average home prices increased, the percentage of homeowners decreased. For example, when the average home price was $209,482 in 2017, the homeownership rate stood at 52%. By 2022, with the average home price reaching $342,715, the homeownership rate had fallen to 44%.
Federal interest rates have influenced homeownership trends in Deerwood. From 2013 to 2016, when interest rates remained consistently low (between 0.09% and 0.40%), the homeownership rate stayed relatively stable at around 56%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined more rapidly, dropping to 44% by 2022.
The renter population in Deerwood has grown significantly, with the percentage of renters increasing from 40% in 2013 to 56% in 2022. This trend corresponds with a rise in average rent prices, which increased from $1,269 in 2013 to $1,629 in 2022, a 28.4% increase. The most substantial jump in average rent occurred between 2019 and 2021, rising from $1,416 to $1,711, a 20.8% increase in just two years. This period also saw a significant shift in the renter population, increasing from 46% to 54%.
The most recent data shows that the average home price in Deerwood reached $350,447 in 2023, indicating continued growth. However, in 2024, there was a slight decrease to $348,566. This minor dip coincides with the Federal interest rate reaching 5.33% in 2024, potentially impacting home buying affordability and demand.
Based on historical data and current trends, projections for Deerwood's future can be made. Over the next five years, average home prices are likely to continue their upward trajectory, albeit at a more moderate pace due to higher interest rates. Average home prices are expected to reach approximately $400,000 by 2029. Average rent prices are also likely to increase, potentially reaching around $1,900 per month by 2029, driven by the growing renter population and increased demand for rental properties.
In conclusion, Deerwood has experienced a significant shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The neighborhood has seen substantial growth in both population and property values, with average home prices nearly doubling between 2013 and 2022. As the renter population continues to grow, further increases in both average home prices and rent prices are anticipated in the coming years, albeit at a potentially slower rate due to higher interest rates.
