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Flagami's Housing Market: Soaring Home Values and Stable Ownership in Miami's Dynamic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Flagami, a vibrant neighborhood in Miami, Florida, has experienced significant changes in its housing market over the past decade. This area, known for its diverse community and proximity to Miami International Airport, has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in Flagami has remained relatively stable, with a slight decrease from 42% in 2013 to 41% in 2021, before increasing back to 42% in 2022. During this period, average home prices have shown a remarkable upward trend. In 2013, the average home price was $134,577, which steadily increased to $383,828 by 2022, representing a 185% increase over nine years. This substantial rise in home values has outpaced the minor fluctuations in homeownership rates, suggesting that other factors beyond price are influencing homeownership decisions in the neighborhood.
Federal interest rates have played a role in shaping homeownership trends in Flagami. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates in Flagami slightly decreased from 42% to 39%, contrary to the expectation that lower rates would encourage homeownership. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized at 39%. The slight increase in homeownership to 42% by 2022 occurred despite rising interest rates, reaching 1.68% that year.
Renter percentages in Flagami have shown a complementary trend to homeownership rates. The proportion of renters increased from 58% in 2013 to a peak of 61% from 2015 to 2019, before decreasing slightly to 58% in 2022. Average rent prices have steadily increased during this period, rising from $1,154 in 2013 to $1,263 in 2022, an increase of 9.4%. It's worth noting that the population of Flagami grew from 61,894 in 2013 to 65,131 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in average rent prices.
In 2023 and 2024, Flagami's housing market continued its upward trajectory. The average home price reached $425,952 in 2023 and further increased to $454,636 in 2024, representing a 18.4% rise over two years. This growth occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, which typically would be expected to dampen housing demand.
Looking ahead, predictive models suggest that both average home prices and average rent prices in Flagami are likely to continue their upward trend over the next five years. Average home prices could potentially reach or exceed $550,000 by 2029, while average rent prices may approach or surpass $1,500 per month. These projections are based on the consistent growth patterns observed in recent years and assume relatively stable economic conditions.
In summary, Flagami has demonstrated resilience and growth in its housing market. Despite minor fluctuations in homeownership rates, average home prices have shown substantial appreciation. The rental market has remained strong, with a gradual increase in average rent prices. The neighborhood's ability to maintain growth in both home values and rent prices, even in the face of rising interest rates, suggests a robust demand for housing in this area of Miami.
