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Home Values Soar in Orlando's Hibiscus Neighborhood Despite Rising Interest Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Hibiscus neighborhood in Orlando, Florida, has experienced remarkable growth in its housing market over the past decade. From 2013 to 2022, homeownership rates increased from 54% to 68%, while average home prices more than tripled from $91,037 to $292,208. This trend suggests a growing desirability of the neighborhood among potential buyers.
The relationship between federal interest rates and homeownership in Hibiscus follows established economic patterns. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership in the neighborhood increased steadily. However, even as interest rates rose significantly in 2022 to 1.68%, homeownership continued to grow, indicating other factors may be influencing this trend.
The percentage of renters in Hibiscus decreased from 46% in 2013 to 32% in 2022. Despite this decline, average rent prices more than doubled from $677 to $1,417 during the same period. This sharp rise in rent prices, coupled with a decreasing renter population, suggests a potential shortage of rental properties or an increase in the quality of available rentals in the area.
As of 2024, the average home price in Hibiscus has reached $323,253, representing a 10.6% increase from 2022. This continued appreciation occurs despite the federal interest rate climbing to 5.33% in 2024, which typically would be expected to slow down home price growth. The persistence of rising home values in the face of higher interest rates indicates strong demand for properties in this neighborhood.
Predictive models suggest that both average home prices and rent prices in Hibiscus are likely to continue their upward trajectory over the next five years. Home prices are projected to increase at a moderate pace, potentially reaching around $375,000 by 2029. Rent prices are expected to follow a similar trend, possibly exceeding $1,700 per month within the same timeframe.
In summary, the Hibiscus neighborhood has demonstrated remarkable resilience and growth in its housing market. The significant increase in homeownership rates, coupled with substantial appreciation in both home values and rent prices, points to a neighborhood that has become increasingly desirable. The ability of the market to sustain price growth even in the face of rising interest rates suggests a robust local economy and continued demand for housing in this Orlando community.
