Oak Terrace: Rising Home Values and Declining Ownership in a Dynamic Florida Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Oak Terrace, a neighborhood in Greenacres, Florida, has experienced significant changes in its housing market over the past decade. The area has seen a general trend of decreasing homeownership rates, rising average home prices, and fluctuating rent prices, creating a complex real estate landscape. This analysis examines the interplay between these factors and their impact on the community. The relationship between homeownership percentages and average home prices in Oak Terrace reveals an inverse correlation. As average home prices increased, the percentage of owner-occupied homes decreased. In 2015, when the average home price was $80,817, the homeownership rate was 71%. By 2022, as the average home price rose to $188,277, the homeownership rate had fallen to 58%. This trend suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Oak Terrace. From 2015 to 2021, interest rates were historically low, ranging from 0.13% to 0.08%. Despite these favorable borrowing conditions, homeownership rates continued to decline, dropping from 71% in 2015 to 56% in 2021. This unexpected trend indicates that factors beyond interest rates, such as rapidly appreciating home values, were influencing homeownership decisions in the neighborhood.
The renter population in Oak Terrace has grown as homeownership rates have declined. The percentage of renter-occupied homes increased from 29% in 2015 to 41% in 2022. Average rent prices have shown considerable volatility during this period. In 2015, the average rent was $812, which spiked to $2,150 in 2017, before moderating to $1,355 in 2022. These fluctuations in rent prices, coupled with the increasing renter population, suggest a complex rental market affected by various economic factors and possibly changes in housing stock or local policies.
Recent data shows that average home prices in Oak Terrace continued their upward trajectory, reaching $207,862 in 2023 and $210,849 in 2024. This represents a significant increase from previous years, indicating sustained demand in the local housing market. Simultaneously, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity and potentially influence the balance between owners and renters in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Oak Terrace will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $250,000 to $275,000, assuming a moderate annual growth rate of 3-5%. Average rent prices are also expected to increase, potentially reaching $1,600 to $1,800 per month by 2029, reflecting ongoing demand for rental properties in the area.
In conclusion, Oak Terrace has experienced a shift towards a more renter-dominated market, with decreasing homeownership rates despite rising property values. The inverse relationship between home prices and ownership rates, coupled with volatile rent prices, underscores the complex dynamics at play in this Florida neighborhood. As interest rates have risen sharply in recent years, it will be crucial to monitor how these changes affect future homeownership trends and overall housing affordability in Oak Terrace.
