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Florence, Arizona: Rising Home Values and Ownership Rates in a Historic Town
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
Florence, Arizona, a town in Pinal County, has experienced significant changes in its housing market over the past decade. Known for its historic downtown and as the county seat, Florence has seen a remarkable shift in homeownership rates and property values. The town has witnessed a steady increase in owner-occupied housing, coupled with rising average home prices and fluctuating average rent costs.
The trend in homeownership in Florence has been notably positive. In 2013, 71% of housing units were owner-occupied. This percentage steadily increased over the years, reaching an impressive 86% by 2022. This substantial rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price in Florence was $132,279. By 2022, this figure had skyrocketed to $370,797, representing a 180% increase over nine years.
The relationship between federal interest rates and homeownership rates in Florence presents an interesting dynamic. Despite the general trend of lower interest rates encouraging homeownership, Florence's ownership rates continued to climb even as interest rates fluctuated. For instance, when interest rates were at historic lows of 0.08% in 2021, Florence's homeownership rate was 84%. Interestingly, this rate further increased to 86% in 2022, even as interest rates rose to 1.68%.
Conversely, the percentage of renters in Florence has steadily decreased. In 2013, 29% of housing units were renter-occupied, but by 2022, this had dropped to just 14%. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,138 per month. After some fluctuations, it reached $1,224 by 2022, representing a 7.6% increase over the period. This rise in rent prices, despite a shrinking renter population, could be attributed to the overall increase in property values and living costs in the area.
Looking at the most recent data, the average home price in Florence for 2023 was $344,827, showing a slight decrease from 2022. However, in 2024, prices have begun to climb again, reaching $348,237. This upward trend is occurring despite high interest rates, which stood at 5.02% in 2023 and increased further to 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in Florence to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also likely to increase, following the overall trend of rising property values in the area.
In summary, Florence has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. Despite fluctuations in interest rates, the town has maintained a strong trend of increasing owner-occupied housing. While the renter population has decreased, average rent prices have still shown an overall increase. These trends suggest a robust and growing housing market in Florence, with a strong preference for homeownership among its residents.
