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New Smyrna Beach's State Road 44 Corridor: Rising Home Values and Shifting Ownership Patterns
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
The State Road 44 Corridor neighborhood in New Smyrna Beach, Florida, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing population and housing values, with some fluctuations in the balance between owners and renters.
Homeownership rates in the State Road 44 Corridor have shown variability, ranging from 68% to 75% between 2013 and 2022. The average home prices have demonstrated a consistent upward trend during this period. In 2012, the average home price was $128,229, which increased to $322,030 by 2022, representing a substantial 151% growth over a decade. This appreciation in home values coincided with periods of both increasing and decreasing homeownership rates. For instance, while the homeownership rate peaked at 75% in 2018 and 2019, it decreased to 68% by 2022, despite the continued rise in average home prices.
Federal interest rates have played a role in homeownership trends in the neighborhood. The period from 2013 to 2022 was characterized by historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely contributed to the overall high levels of homeownership observed during this time. However, the relationship is not always direct, as evidenced by the drop in homeownership percentage to 68% in 2022 despite a relatively low interest rate of 1.68% that year.
Renter percentages in the State Road 44 Corridor have fluctuated inversely to homeownership rates, ranging from 25% to 32% between 2013 and 2022. Average rent prices have shown an overall upward trend, albeit with some volatility. In 2013, the average rent was $1,317, which increased to $1,516 by 2022, representing a 15% increase. Interestingly, the highest average rent of $1,537 was recorded in 2016 when the renter percentage was 32%. The population growth from 2,968 in 2013 to 4,717 in 2022 likely contributed to the upward pressure on both home prices and rents.
In 2023 and 2024, the average home prices in the State Road 44 Corridor continued to rise, reaching $327,973 in 2023 and $328,896 in 2024. This represents a slight slowdown in the rate of appreciation compared to previous years. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in the State Road 44 Corridor will continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $360,000 to $380,000. Average rent prices are also expected to increase, potentially reaching $1,700 to $1,800 per month within the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and changes in federal interest rates.
In summary, the State Road 44 Corridor has experienced significant growth in both population and housing values over the past decade. While homeownership rates have fluctuated, they have remained relatively high, influenced by low interest rates for much of the period. The recent sharp increase in interest rates, coupled with consistently rising home prices, may present challenges for future homeownership rates. The rental market has shown resilience, with rent prices generally increasing alongside home values. As the neighborhood continues to evolve, the interplay between homeownership rates, housing prices, and rental market dynamics will be crucial in shaping its residential landscape.
