Loading Content...
Harbor Village Home Values: Rising Prices and Shifting Ownership in Pompano Beach's Coastal Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Harbor Village, a neighborhood in Pompano Beach, Florida, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the area saw a notable decline in homeownership rates, coupled with a substantial increase in average home prices. This shift has transformed the neighborhood's residential landscape, with more residents opting to rent rather than own their homes. The homeownership rate in Harbor Village decreased from 49% in 2013 to 33% in 2022. During the same period, average home prices more than doubled, rising from $260,587 in 2013 to $614,234 in 2022, representing a 135.7% increase. This inverse relationship suggests that the dramatic rise in home prices may have made homeownership less accessible for many residents.
Federal interest rates have played a significant role in shaping homeownership trends in Harbor Village. Between 2013 and 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 46-49%. However, as interest rates began to climb more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, ultimately dropping to 33% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable and discourage homeownership.
As homeownership declined, the percentage of renters in Harbor Village increased from 51% in 2013 to 67% in 2022. During this period, average rent prices also rose, though not as dramatically as home prices. The average rent increased from $1,037 in 2013 to $1,305 in 2022, a 25.8% increase. This more modest growth in rent prices compared to home prices may have contributed to the shift towards renting. The population of Harbor Village has fluctuated over the years but showed a significant increase from 1,942 in 2021 to 2,319 in 2022, which may have further driven demand for rental properties.
In 2023 and 2024, the upward trend in average home prices continued, reaching $654,379 in 2023 and $673,898 in 2024. This represents a 6.5% increase from 2022 to 2023 and a further 3% increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Harbor Village may continue to rise over the next five years, potentially reaching around $800,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,500 per month in the same timeframe. However, the rate of increase may moderate compared to the sharp rises seen in recent years.
In summary, Harbor Village has experienced a significant shift towards renting, driven by rapidly increasing home prices and fluctuating interest rates. The neighborhood has seen substantial property value appreciation, with average home prices more than doubling from 2013 to 2022. As the area continues to evolve, it's likely to see further changes in its housing market dynamics, with a continued trend towards higher property values and rental rates.
