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Otis, Jacksonville: Rising Home Values and High Ownership Rates Amid Interest Rate Fluctuations
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
Otis, a neighborhood in Jacksonville, Florida, has experienced notable fluctuations in its real estate market over the past decade. This area has maintained a consistently high rate of homeownership, with an interesting interplay between average home prices and ownership trends. The homeownership rate in Otis has remained relatively stable, ranging from 82% to 90% between 2013 and 2022. In 2013, 86% of residents were homeowners, and this figure reached its peak at 90% in 2022. Average home prices in the neighborhood have shown a steady upward trend during this period. In 2013, the average home price was $129,404, which increased to $313,043 by 2022, representing a substantial 142% growth over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in Otis. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained high, between 84% and 88%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Otis actually increased to 90%, suggesting strong local demand for housing despite higher borrowing costs.
Renter percentages in Otis have inversely mirrored homeownership rates, ranging from 10% to 18% between 2013 and 2022. Interestingly, average rent prices have shown a downward trend in recent years. In 2013, the average rent was $1,349, which remained stable until 2018. However, from 2019 onwards, there was a significant decrease, with average rent dropping to $771 in 2022. This 42.8% decrease in average rent over three years occurred despite the population remaining relatively stable, suggesting factors beyond population changes influenced rental prices.
In 2023, the average home price in Otis slightly decreased to $312,380, and in 2024, it further declined to $310,351. This represents a minor correction in the housing market, with prices decreasing by about 0.9% from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially influencing this slight downturn in home prices.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued stability in homeownership rates in Otis, likely remaining above 85%. Average home prices are expected to stabilize or show modest growth, potentially reaching around $330,000 by 2029. Average rent prices, which have been declining, may stabilize or see a slight increase, potentially reaching $850-$900 by 2029, assuming economic conditions and local factors remain relatively stable.
In summary, Otis has demonstrated a robust homeownership market with steadily increasing average home prices over the past decade. The neighborhood has maintained high homeownership rates despite fluctuations in federal interest rates. The rental market has seen decreasing prices, contrasting with the rising home values. These trends suggest a strong preference for homeownership in Otis, with the potential for continued stability in both the ownership and rental markets in the coming years.
