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Shalimar, Florida: Resilient Housing Market with Rising Home Values
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
Shalimar, a small town in Florida with a population of 766 in 2022, has experienced notable fluctuations in its housing market over the past decade. This compact community has seen significant shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Shalimar has shown considerable variability from 2013 to 2022. In 2013, the ownership rate stood at 71%, rising to a peak of 77% in 2017. However, this trend reversed in subsequent years, with ownership dropping to 66% in 2021 before rebounding to 72% in 2022. Concurrently, average home prices in Shalimar have demonstrated a consistent upward trajectory. From $200,110 in 2013, average home prices rose steadily, reaching $386,731 in 2022, representing a substantial 93% increase over this period.
The relationship between federal interest rates and homeownership rates in Shalimar appears to follow established patterns. As interest rates remained low from 2013 to 2016, hovering between 0.09% and 0.4%, homeownership rates in Shalimar increased from 71% to 75%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed more volatility, ultimately settling at 72% in 2022.
Renter percentages in Shalimar have inversely mirrored homeownership trends, ranging from a low of 23% in 2017 to a high of 34% in 2021. Average rent prices have shown an interesting pattern, initially decreasing from $1,432 in 2013 to $1,284 in 2019, before sharply increasing to $1,745 in 2022. This 36% rise in average rent from 2019 to 2022 occurred despite relatively stable population figures, suggesting other factors such as housing supply constraints or increased demand for rental properties may have influenced this trend.
In 2023 and 2024, Shalimar's housing market continued its upward trajectory, albeit at a slower pace. Average home prices reached $393,246 in 2023 and $396,856 in 2024, representing a modest 1.7% and 0.9% year-over-year increase respectively. This slowdown in price growth coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially dampening demand in the housing market.
Looking ahead, predictive models suggest a continuation of the upward trend in both average home prices and rent prices over the next five years, albeit at a more moderate pace. Average home prices are projected to increase by approximately 2-3% annually, potentially reaching around $450,000 by 2029. Average rent prices are expected to follow a similar trajectory, with annual increases of 3-4%, potentially surpassing $2,000 per month by 2029.
In summary, Shalimar's housing market has demonstrated resilience and growth over the past decade, with significant increases in both average home prices and rent prices. The town has maintained a relatively high homeownership rate despite fluctuations, suggesting a strong local preference for homeownership. However, the recent sharp rise in interest rates and the slowing pace of home price appreciation indicate a potential shift towards a more balanced market in the coming years.
