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South Beach, Staten Island: A Decade of Home Values and Ownership Trends in a Coastal Neighborhood
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
South Beach, located in Staten Island, New York, is a vibrant coastal neighborhood known for its sandy beaches and historic boardwalk. Over the past decade, this area has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The relationship between homeownership percentages and average home prices in South Beach has shown some interesting patterns. In 2013, the neighborhood had a high homeownership rate of 69%, coinciding with an average home price of $378,787. As average home prices steadily increased, reaching $498,718 in 2017, the homeownership rate declined to 61%. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. However, by 2022, despite average home prices climbing to $648,189, the homeownership rate rebounded to 66%, indicating a possible stabilization in the market or increased buyer confidence.
Federal interest rates have played a significant role in shaping homeownership trends in South Beach. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates in South Beach remained relatively stable, hovering around 64-65%. As interest rates began to rise more notably from 2017 (1%) to 2019 (2.16%), homeownership rates initially dipped to 61% but then increased to 66% by 2019, possibly due to buyers rushing to secure mortgages before rates climbed further.
Renter percentages and average rent prices in South Beach have shown a generally positive correlation. In 2013, when the renter-occupied percentage was 31%, the average rent was $920. As the renter population increased to 39% in 2017, average rent prices rose to $1,202. However, this trend wasn't consistent throughout the decade. For instance, in 2015, despite a slight decrease in the renter population to 35%, the average rent dropped to $819, possibly due to broader economic factors or an increase in housing supply. By 2022, with renters comprising 34% of occupants, the average rent had increased to $1,271, reflecting a general upward trend in rental costs.
Looking at the most recent data, average home prices in South Beach continued to rise, reaching $656,657 in 2023 and $658,888 in 2024. This represents a modest increase of 0.34% from 2023 to 2024, suggesting a potential slowdown in home price appreciation. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and housing affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in South Beach will continue to appreciate, albeit at a more moderate pace. Given the recent slowdown in price growth and higher interest rates, we project average home prices could reach approximately $700,000 to $725,000 by 2029. For average rent prices, considering the historical fluctuations and recent upward trend, we estimate they could increase to around $1,400 to $1,500 per month over the next five years, assuming stable economic conditions and continued demand for rental properties in the area.
In summary, South Beach has demonstrated resilience in its housing market, with homeownership rates rebounding despite rising home prices. The inverse relationship between home prices and ownership rates earlier in the decade has given way to a more complex dynamic, possibly influenced by changing interest rates and local economic factors. Rental prices have generally trended upward, correlating with fluctuations in the renter population. As the neighborhood moves forward, the interplay between interest rates, housing prices, and demographic shifts will continue to shape its residential landscape.
