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Rising Home Values and High Ownership Rates in Atlantic Beach: A Coastal Village's Real Estate 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
Atlantic Beach, located in New York, is a small coastal community with a rich history and a unique demographic profile. Over the past decade, this village has experienced significant shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics. The homeownership rate in Atlantic Beach has shown a notable increase from 2013 to 2022. In 2013, 88% of housing units were owner-occupied, and this figure rose to 91% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $687,381, and by 2022, it had climbed to $1,166,369, representing a remarkable 69.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in Atlantic Beach presents an interesting case. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.14%), the homeownership rate remained relatively stable, fluctuating between 82% and 89%. This suggests that other local factors, such as the desirability of the area and limited housing supply, may have played a more significant role in homeownership trends than national interest rates.
Conversely, the percentage of renters in Atlantic Beach decreased from 12% in 2013 to 9% in 2022. During this period, average rent prices showed considerable volatility. The median rent increased from $2,250 in 2013 to a peak of $2,958 in 2018, before declining to $2,887 in 2022. This represents a 28.3% increase in average rent over the nine-year period, despite the declining renter population. The fluctuation in rent prices may be attributed to the limited rental inventory and the overall increase in property values in the area.
In 2023 and 2024, Atlantic Beach continued to see growth in average home prices. The average home price reached $1,242,698 in 2023 and further increased to $1,281,948 in 2024. This represents a 6.5% increase from 2022 to 2023 and an additional 3.2% increase from 2023 to 2024. Notably, these price increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Atlantic Beach will continue to rise over the next five years, albeit at a more moderate pace. We can expect an annual appreciation rate of approximately 3-4%, which would put the average home price around $1.5 million by 2029. Average rent prices are also likely to increase, potentially reaching $3,300-$3,500 per month in the same timeframe, assuming the current trend of limited rental inventory persists.
In summary, Atlantic Beach has demonstrated a strong trend towards homeownership, with a concurrent significant increase in property values. The resilience of the local real estate market, even in the face of rising interest rates, suggests a continued demand for properties in this coastal community. The limited rental market has shown volatility but maintains high average rents, reflecting the overall desirability of the area. These trends indicate that Atlantic Beach is likely to remain a predominantly owner-occupied community with high property values in the foreseeable future.
