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Paradise Island's Rising Home Values and Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Paradise Island, a neighborhood in Treasure Island, Florida, has seen significant changes in homeownership rates and property values over the past decade. This analysis examines the relationship between ownership percentages, average home prices, and average rent costs in this coastal community.
The ownership percentage in Paradise Island has increased from 72% in 2013 to 82% in 2022. This rise in homeownership correlates with a substantial growth in average home prices, which more than doubled from $222,457 in 2010 to $585,002 in 2022. This 163% increase in average home values over 12 years reflects the neighborhood's growing desirability and investment potential.
The relationship between federal interest rates and homeownership rates in Paradise Island presents an interesting dynamic. Despite historically low interest rates between 2010 and 2021, ranging from 0.08% to 2.16%, the ownership percentage saw its most significant jump from 77% to 82% between 2020 and 2022, when interest rates began to rise. This suggests that factors such as the area's attractiveness and potential for appreciation may have played a more significant role in driving homeownership than interest rates alone.
The renter population in Paradise Island has decreased from 28% in 2013 to 18% in 2022. Despite this decline, average rent prices have shown an overall upward trend, rising from $1,133 in 2013 to $1,269 in 2022, with a peak of $1,628 in 2021. This increase in average rent prices, coupled with a decreasing renter population, suggests a potential shortage of rental properties or an increase in the quality of available rentals.
Recent data shows average home prices in Paradise Island experienced a slight decline from $585,002 in 2022 to $571,800 in 2023, with a further minor decrease to $568,796 in 2024. This softening in prices coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in the housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Paradise Island will likely stabilize or show modest growth, assuming interest rates remain elevated. The current high ownership rate of 82% suggests the market may be approaching saturation, which could lead to a more balanced market in the coming years. Average rent prices are expected to continue their upward trajectory, albeit at a more moderate pace, as the limited supply of rental properties meets ongoing demand from the remaining renter population.
In summary, Paradise Island has witnessed a significant shift towards homeownership, accompanied by substantial appreciation in property values. The neighborhood's desirability, evidenced by rising home prices and rents, has persisted even in the face of changing economic conditions. As the market potentially reaches a more mature stage, we expect to see a period of stabilization in both ownership rates and property values, with continued but moderated growth in the rental market.
