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Rising Home Values and Shifting Ownership in Key West's White Street Gallery District
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 White Street Gallery District in Key West, Florida, has experienced significant changes in homeownership and property values over the past decade. This analysis examines the trends in average home prices, ownership rates, and rental market dynamics from 2013 to 2024, with projections for future years. Homeownership rates in the White Street Gallery District have shown a general decline from 2013 to 2022. In 2013, the homeownership rate was 51%, but by 2022, it had decreased to 46%. Conversely, average home prices saw substantial growth, rising from $721,513 in 2016 to $1,267,732 in 2022, marking a 75.7% increase over six years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rate fluctuations appear to have influenced homeownership trends in the neighborhood. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable, hovering around 45-51%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight downward trend, dropping to 46% by 2022.
Renter percentages and average rent prices in the White Street Gallery District have shown a notable correlation. In 2013, the renter-occupied percentage was 49%, with an average rent of $1,418. By 2022, the renter percentage had increased to 54%, while the average rent rose to $2,128, marking a 50% increase in rent prices over nine years. This trend suggests that as homeownership became less attainable, more residents turned to renting, potentially driving up rental demand and prices.
Recent data shows that average home prices in the White Street Gallery District continued their upward trajectory, reaching $1,362,930 in 2023 and $1,427,956 in 2024. This represents a 7.5% increase from 2022 to 2023, and a further 4.8% increase from 2023 to 2024. Federal interest rates also saw significant increases, rising to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Predictive models forecast that average home prices in the White Street Gallery District will continue to rise, potentially reaching around $1.8 million by 2029. Average rent prices are also expected to increase, potentially surpassing $2,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In conclusion, the White Street Gallery District has experienced a notable shift towards renting, with decreasing homeownership rates and rising average home and rent prices. The inverse relationship between homeownership rates and home prices, coupled with the influence of federal interest rates, has shaped the neighborhood's housing landscape. As average home prices continue to climb and interest rates remain elevated, the trend towards renting may persist, potentially leading to further increases in rental demand and prices in the coming years.
