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Fairways Forest: A Decade of Rising Home Values and Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Fairways Forest, a neighborhood in Jacksonville, Florida, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and rental market dynamics from 2013 to 2024, with projections for the future. The relationship between homeownership rates and average home prices in Fairways Forest has shown interesting patterns. In 2013, the neighborhood had a 73% homeownership rate, with average home prices at $111,499. As average home prices steadily increased, reaching $145,057 by 2016, homeownership rates declined to 62%. This inverse relationship continued until 2019, when average home prices hit $186,962 and homeownership slightly increased to 66%. From 2020 to 2022, a remarkable shift occurred. Average home prices surged from $200,101 to $288,131, while homeownership rates rose dramatically from 70% to 79%, indicating a strong desire for property ownership despite rising costs.
Federal interest rates have played a crucial role in shaping homeownership trends in Fairways Forest. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, coinciding with relatively stable homeownership rates between 63% and 73%. As interest rates began to rise gradually from 2016 to 2019, reaching 2.16%, homeownership rates initially dipped but then stabilized around 62-66%. Interestingly, the sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021 corresponded with a significant increase in homeownership, reaching 76% by 2021. This trend supports the notion that lower interest rates generally encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Fairways Forest have also shown notable trends. In 2013, with 27% of residents renting, the average rent was $1,251. As the renter population increased to 38% by 2016, average rent decreased to $1,106, suggesting an oversupply of rental properties. However, from 2017 to 2021, despite fluctuations in the renter population between 30% and 38%, average rent prices steadily increased from $1,187 to $1,427. This trend indicates growing demand for rental properties, possibly due to rising home prices. By 2022, with only 20% of residents renting, average rent slightly decreased to $1,269, possibly reflecting a shift towards homeownership.
The years 2023 and 2024 have seen continued growth in average home prices in Fairways Forest. In 2023, the average home price reached $291,967, a modest increase from 2022. By 2024, this figure further rose to $297,678, indicating a steady upward trend in property values. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and property demand.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to potentially reach around $350,000 by 2029, assuming a steady growth rate similar to recent years. Average rent prices might increase to approximately $1,600 per month in the same period, reflecting the overall appreciation of property values in the area.
In summary, Fairways Forest has demonstrated resilience and growth in its housing market. The most significant discoveries include the strong correlation between low interest rates and increased homeownership, the recent surge in both home prices and ownership rates despite rising costs, and the steady increase in average rent prices even as the renter population fluctuated. These trends suggest a robust and desirable housing market in Fairways Forest, with potential for continued growth in both property values and rental rates in the coming years.
