Loading Content...
Palm Bay's Rising Home Values and Stable Ownership Rates: A Space Coast City's Housing Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Palm Bay, Florida, located in Brevard County, is a rapidly growing city known for its diverse ecosystems and proximity to the Space Coast. With a population of 129,246 in 2022, Palm Bay has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade.
The homeownership rate in Palm Bay has fluctuated between 68% and 81% from 2013 to 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $94,354, which steadily increased to $305,445 by 2022, representing a remarkable 224% increase over nine years. This substantial rise in home prices has not significantly deterred homeownership, as the rate remained relatively stable, ending at 78% in 2022.
Federal interest rates have played a role in homeownership trends in Palm Bay. From 2013 to 2016, when interest rates were extremely low (between 0.09% and 0.4%), homeownership rates remained stable around 68-72%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership actually increased, reaching 81% in 2018. This suggests that other local factors, such as job market growth or demographic shifts, may have had a stronger influence on homeownership than interest rates alone.
Renter percentages in Palm Bay have inversely mirrored homeownership rates, ranging from 19% to 32% between 2013 and 2022. Average rent prices have generally increased during this period, albeit with some fluctuations. In 2013, the average rent was $855, which rose to $1,438 by 2022, a 68% increase. Notably, there was a significant jump in average rent from $1,216 in 2020 to $1,438 in 2022, coinciding with a period of rapid population growth from 119,246 to 129,246 residents.
In 2023, the average home price in Palm Bay reached $312,312, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $316,466, while interest rates have risen slightly to 5.33%. These figures indicate a continued upward trend in both home prices and interest rates, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in Palm Bay will continue to rise over the next five years, albeit at a potentially slower rate than the dramatic increases seen in recent years. Average rent prices are also expected to increase, driven by population growth and demand for housing. However, the rate of increase may moderate as new housing developments come online to meet demand.
In summary, Palm Bay has experienced significant growth in both average home prices and average rent prices over the past decade. Despite rising prices, homeownership rates have remained relatively stable, suggesting a strong desire for homeownership in the community. The city's continued population growth, coupled with its attractive location and amenities, is likely to sustain demand for both owned and rented housing in the coming years.
