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Harris Park: Rising Home Values and Ownership Rates Defy Interest Rate 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
Harris Park, a vibrant neighborhood in St. Petersburg, Florida, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a notable increase in owner-occupied housing, coupled with a substantial rise in average home prices and average rent costs. The trend of homeownership in Harris Park has shown a remarkable upward trajectory. In 2013, the percentage of owner-occupied homes stood at 56%. By 2022, this figure had climbed to an impressive 75%, representing a 19 percentage point increase over nine years. This shift towards increased homeownership coincides with a substantial rise in average home prices. In 2013, the average home price in Harris Park was $79,388. By 2022, this figure had skyrocketed to $303,918, marking a staggering 283% increase.
The relationship between federal interest rates and homeownership rates in Harris Park presents an interesting dynamic. Despite fluctuations in interest rates, the neighborhood has consistently seen an increase in homeownership. For instance, when interest rates were at a low of 0.08% in 2021, homeownership reached 74%. This trend continued into 2022, with homeownership rising to 75% even as interest rates increased to 1.68%. This suggests that other local factors, such as the neighborhood's desirability or local economic conditions, may have played a more significant role in driving homeownership than interest rates alone.
Conversely, the percentage of renters in Harris Park has decreased over time, dropping from 44% in 2013 to 25% in 2022. Despite this decline in the renter population, average rent prices have shown a steady increase. In 2013, the average rent was $892, rising to $1,129 by 2022, representing a 27% increase. This trend suggests that while fewer people are renting in Harris Park, those who do are paying significantly more, possibly due to improved quality of rental properties or increased demand for the limited rental inventory.
Looking at more recent data, the average home price in Harris Park continued its upward trend, reaching $316,340 in 2023 and further increasing to $333,459 in 2024. This represents a 4.1% year-over-year increase from 2023 to 2024. Notably, these price increases occurred despite relatively high interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong demand for homes in this neighborhood regardless of financing costs.
Applying predictive models to forecast trends for the next five years, it's anticipated that average home prices in Harris Park will continue to rise, potentially reaching around $400,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. These projections are based on the consistent upward trends observed in both home values and rental rates over the past decade.
In summary, Harris Park has undergone a significant transformation in its housing market. The neighborhood has seen a substantial shift towards homeownership, with three-quarters of residents now owning their homes. This change has been accompanied by dramatic increases in property values, with average home prices more than tripling since 2013. Despite higher interest rates in recent years, the demand for homes in Harris Park remains strong, suggesting the neighborhood's continued appeal to potential buyers. For renters, while their numbers have decreased, they face a more expensive rental market, reflecting the overall increase in the area's desirability and property values.
