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Oakgrove's Soaring Home Values: A Decade of Change in North Miami Beach
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
Oakgrove, a neighborhood in North Miami Beach, Florida, has experienced significant changes in its real estate market over the past decade. This analysis examines the fluctuations in homeownership rates and the notable increases in both average home prices and rent prices, reflecting the dynamic nature of Oakgrove's housing market.
The relationship between homeownership percentage and average home prices in Oakgrove reveals an interesting pattern. In 2013, the homeownership rate was 62%, with an average home price of $116,226. As average home prices steadily increased, reaching $265,105 in 2019, the homeownership rate also rose to 65%. However, this trend began to reverse in recent years. By 2022, despite the average home price climbing to $414,141, the homeownership rate had decreased to 57%. This suggests that rising home prices may have started to outpace the ability of residents to purchase homes, potentially pushing more people into the rental market.
Federal interest rates have played a role in influencing homeownership rates in Oakgrove. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 63%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, we observed a slight increase in homeownership to 65% in 2019 and 2020. This could be attributed to residents rushing to secure mortgages before rates increased further. However, the sharp rise in interest rates to 1.68% in 2022 coincided with a drop in homeownership to 57%, suggesting that higher borrowing costs may have deterred potential buyers.
The rental market in Oakgrove has shown its own distinct trends. In 2013, the renter percentage was 38%, with an average rent of $1,531. As the population grew from 10,040 in 2013 to 11,275 in 2022, the renter percentage increased to 43%, and the average rent fluctuated, reaching $1,436 in 2022. This indicates a growing demand for rental properties, possibly driven by the increasing population and the rising cost of homeownership.
Looking at the most recent data, average home prices in Oakgrove continued their upward trajectory, reaching $455,790 in 2023 and $488,348 in 2024. This represents a significant increase of 17.9% from 2022 to 2024. Concurrently, federal interest rates have risen dramatically, standing at 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with elevated home prices, are likely to have a substantial impact on homeownership affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Oakgrove will continue to rise, albeit at a potentially slower rate due to the high interest rate environment. We project average home prices could reach approximately $550,000 to $600,000 by 2029. For average rent prices, the forecast suggests a continued upward trend, potentially reaching $1,800 to $2,000 per month by 2029, driven by increased demand for rental properties as homeownership becomes less attainable for some residents.
In summary, Oakgrove has experienced a significant increase in average home prices over the past decade, with a recent decline in homeownership rates despite rising property values. The rental market has grown, with an increasing percentage of renters and fluctuating average rent prices. The current high-interest rate environment, combined with elevated home prices, suggests that the neighborhood may see a continued shift towards renting in the near future, with both home prices and rents likely to continue their upward trajectories, albeit potentially at a more moderate pace.
