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The Cape's Housing Market: Soaring Home Values and Stable Ownership in Jacksonville
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
The Cape, a neighborhood in Jacksonville, Florida, has experienced significant changes in homeownership and housing prices over the past decade. This community has maintained a consistently high rate of owner-occupied homes while also seeing substantial growth in average home values. From 2013 to 2022, The Cape witnessed a general trend of increasing homeownership rates. In 2013, the homeownership rate was 87%, which slightly decreased to 85% by 2022. However, this minor change masks more significant year-to-year fluctuations. For instance, the rate dropped to 78% in 2016 before rebounding to 89% in 2021. These variations in homeownership rates occurred alongside rising average home prices. The average home price in 2013 was $154,655, which steadily increased to $360,317 by 2022, representing a substantial 133% increase over this period.
The relationship between federal interest rates and homeownership rates in The Cape is notable. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained relatively stable around 82-87%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates showed some volatility but generally remained high, indicating that factors beyond interest rates were influencing homeownership decisions in this neighborhood.
Rental trends in The Cape have shown interesting patterns. The percentage of renters increased from 13% in 2013 to a peak of 22% in 2016, before declining to 15% in 2022. Average rent prices remained relatively stable during this period, ranging from $1,731 to $1,739 between 2013 and 2020. However, there was a notable decrease in 2021 to $1,496, followed by an increase to $1,682 in 2022. These fluctuations in rental rates and occupancy percentages occurred while the neighborhood's population remained relatively stable, ranging from 6,248 to 6,792 residents during this period.
The most recent data shows that the average home price in The Cape reached $364,270 in 2023, indicating continued appreciation. However, in 2024, there was a slight decrease to $363,405. This minor decline coincides with a significant increase in federal interest rates, which rose to 5.33% in 2024, potentially impacting home buying affordability and demand.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in The Cape will continue to appreciate, albeit at a more moderate pace. The recent stabilization in prices suggests a potential cooling of the market, but the neighborhood's desirability and limited housing supply may continue to support price growth. For rent prices, a gradual increase is expected over the next five years, aligning with the overall trend of rising housing costs in the area.
In summary, The Cape has demonstrated resilience in maintaining high homeownership rates despite significant increases in average home prices. The neighborhood has weathered fluctuations in federal interest rates while seeing substantial property value appreciation. The rental market has shown stability in pricing with some recent volatility, reflecting the dynamic nature of this Jacksonville community. As The Cape moves forward, it is likely to continue balancing the demands of both homeowners and renters while navigating the broader economic factors influencing the housing market.
