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Home Values and Ownership Trends in Pecan Park, Jacksonville: A Decade of Significant Change
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
Pecan Park, a neighborhood in Jacksonville, Florida, has experienced significant changes in its housing market over the past decade. This area has seen a notable increase in homeownership rates, accompanied by fluctuations in average home prices and average rent prices.
The homeownership rate in Pecan Park has shown a strong upward trend, rising from 77% in 2019 to 89% in 2022. This substantial increase in homeownership coincided with a significant rise in average home prices. In 2019, the average home price was $250,200, which grew to $375,563 by 2022, representing a 50% increase over just three years. This trend suggests a strong correlation between rising home values and increased homeownership in the neighborhood.
The relationship between federal interest rates and homeownership rates in Pecan Park appears to follow the general principle that lower interest rates encourage homeownership. For instance, when interest rates were at historic lows of 0.08% in 2021, the homeownership rate in Pecan Park reached 85%. As interest rates began to rise in 2022 to 1.68%, the homeownership rate continued to increase to 89%, possibly due to residents rushing to purchase homes before rates climbed further.
Conversely, the percentage of renters in Pecan Park has decreased over time, dropping from 19% in 2019 to 11% in 2022. Interestingly, despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $1,658 in 2019 to $1,769 in 2022, with a peak of $1,854 in 2021. This trend might be attributed to the growing population in the area, which increased from 6,729 in 2019 to 8,307 in 2022, potentially creating more demand for rental properties despite the decreasing percentage of renters.
Looking at the most recent data, the average home price in Pecan Park slightly increased to $376,158 in 2023 before experiencing a minor decline to $373,515 in 2024. This slight downturn could be related to the significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may have cooled the housing market somewhat, leading to a stabilization in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Pecan Park may continue to show moderate growth, albeit at a slower pace than the rapid increases seen in recent years. The high interest rate environment could temper price growth in the short term. For average rent prices, we expect a continued upward trend, driven by the area's growing population and the potential for some residents to delay home purchases due to higher mortgage rates.
In summary, Pecan Park has experienced a significant shift towards homeownership, with rising average home prices and a growing population. The rental market, while shrinking in terms of percentage, has seen increases in average rent prices. The neighborhood's housing market appears to be responsive to changes in interest rates and population growth, with recent data suggesting a potential stabilization in home prices amidst higher interest rates.
