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Indialantic, Florida: Rising Home Values and Shifting Ownership in a Coastal Town
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
Indialantic, a charming town located in Brevard County, Florida, offers a unique coastal living experience. This beachside community, situated on a barrier island between the Indian River Lagoon and the Atlantic Ocean, has seen significant changes in its real estate landscape over the past decade. The town has experienced a general trend of increasing homeownership rates and rising average home prices, while average rent prices have also shown an upward trajectory.
The percentage of owner-occupied homes in Indialantic has seen a notable increase from 79% in 2013 to 78% in 2022. This trend coincided with a substantial rise in average home prices, which grew from $251,769 in 2013 to $620,320 in 2022, representing a remarkable 146% increase over nine years. The peak of homeownership was observed in 2018 and 2019, with 87% of homes being owner-occupied. This period also saw a steady increase in average home prices, reaching $383,540 in 2018 and $387,706 in 2019.
Federal interest rates have played a significant role in shaping homeownership trends in Indialantic. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the increase in homeownership from 79% to 83% during this time. As interest rates began to rise more sharply from 2017 (1.00%) to 2019 (2.16%), we observed the homeownership rate peaking at 87%. This suggests that rising interest rates may have initially spurred some residents to purchase homes before rates climbed further.
The rental market in Indialantic has experienced its own set of dynamics. The percentage of renter-occupied homes decreased from 21% in 2013 to 22% in 2022. However, average rent prices have shown an overall upward trend, rising from $1,221 in 2013 to $1,655 in 2022, a 35.5% increase. Interestingly, there was a period of fluctuation in rent prices between 2014 and 2018, with the lowest average rent of $1,142 recorded in 2014 and the highest of $1,282 in 2015. The town's population growth, from 4,501 in 2013 to 4,886 in 2022, may have contributed to the overall increase in rent prices due to higher demand for rental properties.
In 2023 and 2024, Indialantic's real estate market continued to evolve. The average home price in 2023 reached $643,914, a 3.8% increase from 2022. In 2024, the average home price further rose to $654,479, indicating a continued upward trend in property values. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and market dynamics.
Looking ahead, predictive models suggest that average home prices in Indialantic may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, Indialantic has experienced a significant increase in homeownership rates and average home prices over the past decade, with a parallel rise in average rent prices. The interplay between federal interest rates, population growth, and local market conditions has shaped these trends. As the town moves forward, it is likely to see continued growth in property values and rental rates, reflecting its desirable coastal location and the broader economic factors influencing the real estate market.
