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Rising Home Values in Coconut Creek: The Butterfly Capital's Housing Market Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Coconut Creek, known as the "Butterfly Capital of the World," is a vibrant city located in Broward County, Florida. This charming community has experienced significant growth and development over the past decade, reflecting in its homeownership rates, average home prices, and rental market trends.
The homeownership rate in Coconut Creek has remained relatively stable, hovering around 66-68% between 2013 and 2022. During this period, average home prices have shown a remarkable upward trend. In 2013, the average home price was $119,865, which steadily increased to $289,411 by 2022, representing a substantial 141% growth over nine years. This significant appreciation in home values has outpaced the minor fluctuations in homeownership rates, suggesting that existing homeowners have benefited from substantial equity gains while the city maintained its appeal to new buyers.
Federal interest rates have played a crucial role in shaping homeownership trends in Coconut Creek. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained steady at around 66-68%, likely supported by favorable borrowing conditions. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates showed resilience, maintaining at 66%. This stability suggests that other factors, such as the city's attractiveness and local economic conditions, may have offset the potential negative impact of rising interest rates on homeownership.
The rental market in Coconut Creek has also experienced notable changes. The percentage of renters increased slightly from 32% in 2013 to 34% in 2019, before settling back to 33% in 2022. Concurrently, average rent prices rose steadily, from $1,419 in 2013 to $1,642 in 2022, an increase of about 15.7% over nine years. This growth in rent prices, while significant, was less dramatic than the surge in home prices, potentially making renting an increasingly attractive option for some residents, especially as home prices outpaced wage growth.
In 2023 and 2024, Coconut Creek's housing market continued its upward trajectory. The average home price reached $316,215 in 2023 and further increased to $327,374 in 2024, representing a 13.1% growth over two years from the 2022 figure. This rise occurred despite a significant increase in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that both average home prices and rent prices in Coconut Creek are likely to continue their upward trend over the next five years. Home prices could potentially reach around $375,000 to $400,000 by 2029, assuming a continuation of current growth rates. Average rent prices might increase to approximately $1,800 to $1,900 per month in the same period. However, these projections could be influenced by various factors, including economic conditions, local development initiatives, and broader housing market trends.
In summary, Coconut Creek has demonstrated a robust and growing housing market over the past decade. The city has maintained stable homeownership rates while experiencing significant appreciation in home values. The rental market has shown moderate growth in both occupancy and prices. Despite rising interest rates, the housing market has remained strong, reflecting the city's enduring appeal. As Coconut Creek continues to evolve, it is likely to remain an attractive destination for both homeowners and renters, with ongoing appreciation in both home values and rental prices.
