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Ormond Beach, Florida: Coastal City's Home Values and Ownership Trends Amid Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Ormond Beach, a charming coastal city in Florida, has experienced significant changes in its housing market over the past decade. Known for its beautiful beaches and historic landmarks, this city has seen a notable shift in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in Ormond Beach has remained relatively stable, with a slight increase from 76% in 2016 to 78% in 2022. This trend coincides with a substantial rise in average home prices, which grew from $206,170 in 2016 to $382,695 in 2022, representing an impressive 85.6% increase over six years. The resilience of homeownership rates despite rising prices suggests a strong local economy and continued demand for property in the area.
Federal interest rates have played a significant role in shaping homeownership trends in Ormond Beach. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 0.40%, which likely contributed to the sustained high levels of homeownership. These low rates made mortgages more affordable, encouraging home buying even as prices increased. The slight dip in homeownership to 76% in 2015-2017 coincided with a gradual rise in interest rates, which reached 1.83% by 2018.
Renter occupancy in Ormond Beach has fluctuated slightly, peaking at 24% in 2016-2017 before settling at 22% in 2022. Average rent prices have shown moderate growth, increasing from $1,277 in 2016 to $1,322 in 2022, a 3.5% rise. This relatively modest increase in rent compared to the substantial growth in home prices suggests that renting has remained an attractive option for a segment of the population, particularly as home prices have outpaced rental costs.
In 2023 and 2024, Ormond Beach's housing market continued its upward trajectory, with average home prices reaching $397,754 in 2023 and $398,311 in 2024. This represents a further 4.1% increase from 2022 to 2024. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that average home prices in Ormond Beach may continue to rise, albeit at a more moderate pace. Over the next five years, we can expect average home prices to potentially reach around $450,000 to $475,000, assuming current economic conditions persist. Average rent prices are projected to increase as well, potentially reaching $1,450 to $1,500 per month by 2029, reflecting ongoing demand for rental properties in the area.
In summary, Ormond Beach has demonstrated a robust housing market characterized by rising property values and stable homeownership rates. The significant increase in home prices, coupled with moderate rent growth, reflects the city's desirability and economic strength. While recent interest rate hikes may pose challenges for new buyers, the consistent demand for housing in this coastal Florida city suggests a resilient market poised for continued, albeit potentially more modest, growth in the coming years.
