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Royal Terrace, Jacksonville: Soaring Home Values Reshape Neighborhood Dynamics
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
Royal Terrace, a neighborhood in Jacksonville, Florida, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Royal Terrace has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 67%, but by 2022, it had decreased to 59%. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $30,004, but by 2022, it had skyrocketed to $133,884, representing a remarkable 346% increase over nine years. The relationship between federal interest rates and homeownership rates in Royal Terrace follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 61-67%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a gradual decline, dropping to 59% by 2022.
Renter percentages in Royal Terrace have generally increased as homeownership rates declined. In 2013, renters made up 33% of the population, which increased to 41% by 2022. This trend correlates with rising average rent prices, which increased from $736 in 2013 to $971 in 2022, a 32% increase. It's worth noting that the population of Royal Terrace has remained relatively stable during this period, fluctuating between 1,607 and 1,877 residents, suggesting that changes in renter percentages are more likely due to shifts in housing preferences or affordability rather than significant population changes.
In 2023 and 2024, the housing market in Royal Terrace continued to evolve. The average home price in 2023 reached $139,805, a further increase from 2022. However, in 2024, there was a slight decrease to $139,621. This minor dip coincides with a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and demand.
Looking ahead to the next five years, based on current trends, we can expect average home prices in Royal Terrace to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $160,000 to $170,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,100 to $1,200 per month by 2029, assuming the current rate of increase continues.
In summary, Royal Terrace has experienced a significant shift in its housing market over the past decade. The neighborhood has seen a decline in homeownership rates, coupled with substantial increases in both average home prices and average rent prices. These trends, influenced by factors such as federal interest rates and local market conditions, have reshaped the housing landscape of this Jacksonville neighborhood. As we move forward, it will be crucial to monitor how these trends evolve, particularly in light of recent interest rate hikes and their potential impact on the housing market.
