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Rising Home Values and Shifting Ownership in Hollywood's Carriage Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Carriage neighborhood in Hollywood, Florida, presents an intriguing case study of housing dynamics in a small urban area. This compact community has experienced significant fluctuations in population density and homeownership rates over the past decade, alongside notable changes in average home prices and rent values. From 2013 to 2022, the Carriage neighborhood saw a gradual shift in homeownership rates. In 2013, 81% of residents owned their homes, but by 2022, this figure had decreased to 71%. Concurrently, average home prices in the area experienced substantial growth. In 2013, the average home price was $61,713, and by 2022, it had nearly tripled to $178,906. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
The federal interest rate trends appear to have influenced homeownership rates in Carriage. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership remained relatively stable at around 80%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined to 71%. This pattern aligns with the general economic principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in Carriage increased from 19% in 2013 to 29% in 2022, mirroring the decline in homeownership. Average rent prices also saw a significant uptick during this period. In 2013, the average rent was $965, which increased to $1,675 by 2022, representing a 73.6% rise. The population of Carriage fluctuated during this time, peaking at 1,209 in 2019 before settling at 969 in 2022. These changes in population, coupled with rising rent prices, suggest a growing demand for rental properties in the area.
In 2023 and 2024, the Carriage neighborhood continued to see growth in average home prices. The average home price reached $206,582 in 2023 and further increased to $214,382 in 2024. This represents a 15.5% increase from 2022 to 2023 and a further 3.8% increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise during this period, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels since 2007.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent values for the Carriage neighborhood over the next five years. Average home prices are likely to continue their upward trajectory, potentially reaching around $250,000 by 2029. Rent prices may also continue to rise, potentially surpassing $2,000 per month on average within the same timeframe.
In summary, the Carriage neighborhood has demonstrated a clear trend of increasing property values and rent prices, coupled with a gradual shift from homeownership to renting. The interplay between federal interest rates, local population dynamics, and broader economic factors has significantly influenced these housing trends. As the community continues to evolve, it will be crucial to monitor how these patterns impact the neighborhood's demographic composition and overall affordability.
