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Loch Lomond's Housing Market: Rising Home Values and Shifting Ownership in a Renter-Dominated Neighborhood
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
Loch Lomond, a neighborhood in Pompano Beach, Florida, has experienced significant changes in its housing market over the past decade. The area has witnessed a notable shift in homeownership rates and substantial increases in both average home prices and rent prices, reflecting broader economic trends and local market dynamics. Homeownership rates in Loch Lomond have fluctuated over the years, with a general trend towards increased renting. In 2013, the homeownership rate was 13%, remaining steady until 2016. A significant jump to 21% occurred in 2017, followed by a peak of 22% in 2018. Since then, the rate has gradually declined, settling at 17% in 2022. Concurrently, average home prices have shown a consistent upward trajectory. In 2013, the average home price was $34,738, which more than doubled to $70,099 by 2017. This growth continued, with prices reaching $140,356 in 2022, representing a 304% increase over the decade.
The relationship between federal interest rates and homeownership rates in Loch Lomond appears to follow established trends. As interest rates remained low from 2013 to 2016, around 0.1%, the homeownership rate maintained stability at 13%. The slight increase in interest rates to 1% in 2017 coincided with a jump in homeownership to 21%, possibly due to anticipation of future rate hikes encouraging buyers to enter the market. However, as interest rates continued to rise, reaching 1.68% in 2022, homeownership rates declined to 17%, suggesting that higher borrowing costs may have deterred potential buyers.
Renter percentages in Loch Lomond have generally been high, reflecting the inverse of homeownership trends. The renter-occupied rate was 87% in 2013 and remained stable until 2016. It decreased to 79% in 2017 but has since increased, reaching 83% in 2022. Average rent prices have shown a steady increase over this period. In 2013, the average rent was $1,032, which rose to $1,078 by 2017. By 2022, the average rent had reached $1,206, marking a 16.9% increase over the decade. This trend aligns with the growing population, which increased from 2,467 in 2013 to 3,255 in 2022, potentially driving up demand for rental properties.
In 2023 and 2024, the housing market in Loch Lomond continued its upward trajectory. The average home price in 2023 was $172,054, a significant 22.6% increase from 2022. In 2024, it further rose to $175,100. Concurrently, federal interest rates have also increased substantially, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Loch Lomond 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 population growth and the high proportion of renters in the area. However, the rate of increase may moderate if homeownership becomes more attractive due to potential future interest rate adjustments.
In summary, Loch Lomond has experienced a significant increase in average home prices and average rent prices over the past decade, accompanied by fluctuations in homeownership rates. The neighborhood has maintained a high percentage of renters, likely influenced by rising home prices and changing interest rates. The recent sharp increase in both home prices and interest rates in 2023 and 2024 may reshape the housing market dynamics in the coming years, potentially affecting the balance between homeownership and renting in this evolving Florida neighborhood.
