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West Biloxi: Rising Home Values and Ownership Rates Defy Interest Rate 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
West Biloxi, a neighborhood in Biloxi, Mississippi, has experienced significant changes in its housing market over the past decade. This area has witnessed a notable shift in homeownership rates and fluctuations in both average home prices and average rent prices, reflecting the dynamic nature of its real estate landscape. The analysis of these trends provides valuable insights into the neighborhood's economic development and housing affordability.
The homeownership percentage in West Biloxi has shown an interesting trend over recent years. In 2013, the neighborhood had a 36% homeownership rate. This figure decreased to 29% by 2017 and remained stable until 2019. However, a remarkable turnaround occurred from 2020 onwards, with homeownership rising to 36% in 2020 and further increasing to 42% by 2022. This upward trend in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $97,982, which rose to $132,146 by 2019, representing a 34.9% increase over six years. The trend continued, with average home prices reaching $178,249 in 2022, marking an impressive 81.9% increase from 2013.
The relationship between federal interest rates and homeownership rates in West Biloxi reveals some interesting patterns. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.4%), homeownership actually decreased from 36% to 29%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership also started to increase, reaching 42% in 2022. This suggests that other local factors may have had a stronger influence on homeownership rates than national interest rates in this particular neighborhood.
Renter percentages in West Biloxi showed an inverse relationship to homeownership rates. The percentage of renters increased from 62% in 2013 to a peak of 70% in 2017, before gradually declining to 58% by 2022. Interestingly, average rent prices did not follow a consistent pattern with renter percentages. In 2013, the average rent was $936, which decreased slightly to $918 by 2017 despite the increase in renters. However, average rent then rose to $962 by 2022, even as the percentage of renters decreased. This suggests that other factors, such as overall housing demand and economic conditions, may have influenced rent prices more than the proportion of renters in the neighborhood.
Looking at the most recent data, the average home price in West Biloxi continued its upward trajectory, reaching $184,434 in 2023 and $190,069 in 2024. This represents a 3.4% and 3% year-over-year increase respectively. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests strong demand for housing in the area.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in West Biloxi will likely continue to rise, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach approximately $220,000 to $230,000 by 2029. Average rent prices may also continue to increase, potentially reaching around $1,100 to $1,200 per month in the same timeframe, assuming economic conditions remain stable and housing demand continues to grow.
In summary, West Biloxi has experienced a significant resurgence in homeownership since 2020, coupled with substantial increases in average home prices. The rental market has seen more moderate changes, with fluctuations in both renter percentages and average rent prices. The neighborhood's housing market has shown resilience and growth, even in the face of rising interest rates, indicating strong local demand for housing. These trends suggest that West Biloxi is likely to remain an attractive area for both homeowners and investors in the coming years.
