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Havana, Florida: Rising Home Values and Ownership Rates in a Small Town
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Havana, a charming town in Florida, has experienced notable shifts in its real estate landscape over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices, revealing interesting patterns in this growing community. Homeownership in Havana has shown a steady increase, particularly in recent years. In 2013, the homeownership rate stood at 77%, and by 2022, it had risen to 83%. This upward trend coincides with a significant increase in average home prices. In 2013, the average home price in Havana was $121,547, and by 2022, it had nearly doubled to $237,658, representing a substantial 95.5% increase over this period.
The relationship between federal interest rates and homeownership rates in Havana appears to follow the expected trend. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates gradually increased. The low-interest environment likely made mortgages more affordable, encouraging more residents to purchase homes. This is evidenced by the homeownership rate rising from 77% in 2013 to 81% in 2020.
Conversely, the percentage of renters in Havana has decreased over time, dropping from 23% in 2013 to 17% in 2022. Despite this decline in the renter population, average rent prices have shown volatility. In 2013, the average rent was $751, which increased to $880 in 2021, before slightly decreasing to $815 in 2022. This fluctuation in rent prices, despite a decreasing renter population, could be attributed to various factors including overall housing market conditions and the town's growing population, which increased from 6,943 in 2013 to 7,094 in 2022.
Looking at the most recent data, average home prices in Havana continued to rise, reaching $253,795 in 2023 and $265,320 in 2024. This represents a 6.8% increase from 2022 to 2023 and a further 4.5% increase from 2023 to 2024. Interestingly, federal interest rates also saw a significant increase during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices continued to appreciate, suggesting strong demand in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Havana will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $320,000 to $340,000. For rent prices, we expect a moderate increase, potentially reaching an average of $900 to $950 per month by 2029.
In summary, Havana has experienced a significant increase in homeownership rates and average home prices over the past decade. Despite rising interest rates, the housing market remains strong, with continued price appreciation. The rental market, while smaller, has seen fluctuations in prices. These trends suggest a growing preference for homeownership in Havana, potentially driven by the town's increasing population and overall economic conditions.
