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Fairway's Rising Home Values and Ownership: A Decade of Coastal Real Estate Trends
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
Fairway, a neighborhood in New Smyrna Beach, Florida, has experienced significant changes in its real estate landscape over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The ownership percentage in Fairway has shown a general upward trend, increasing from 84% in 2013 to 87% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Fairway was $114,683. By 2022, this figure had more than doubled to $290,821, representing a 153% increase over nine years. This correlation suggests that despite rising home prices, the neighborhood remained attractive to potential homeowners, possibly due to its desirable location or other amenities.
Federal interest rates have played a crucial role in shaping homeownership trends in Fairway. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates in Fairway remained relatively stable, between 81% and 84%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership in Fairway actually increased from 84% to 90%. This counter-intuitive trend might be attributed to local factors or a rush to purchase homes before rates climbed further.
The rental market in Fairway has experienced fluctuations in both percentage of renters and average rent prices. The percentage of renters decreased from 16% in 2013 to 13% in 2022. However, average rent prices showed an overall upward trend, rising from $947 in 2013 to $1,265 in 2022, an increase of about 34%. The peak in average rent was observed in 2021 at $1,375. These trends suggest that while fewer people are renting in Fairway, those who do rent are paying higher prices, possibly due to increased demand for the limited rental properties available or improvements in rental unit quality.
In 2023 and 2024, the real estate market in Fairway continued to evolve. The average home price in 2023 reached $304,143, and in 2024 it further increased to $312,768. This represents a 7.6% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions in the neighborhood.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Fairway could potentially reach around $350,000 to $380,000 by 2029. Average rent prices might stabilize or see modest increases, potentially reaching $1,400 to $1,500 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, Fairway has demonstrated resilience in its real estate market, with increasing homeownership rates despite rising home prices. The neighborhood has seen substantial appreciation in property values, while the rental market has become more expensive but less prevalent. The interplay between federal interest rates, local market dynamics, and broader economic trends will continue to shape Fairway's real estate landscape in the coming years.
