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Westside/Sunkist Grove: Resilient Homeownership Amid Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Westside/Sunkist Grove, a neighborhood in North Miami, Florida, has experienced significant changes in its real estate market over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The neighborhood has witnessed an overall increase in homeownership rates, rising from 73% in 2014 to 78% in 2022. This trend coincides with a substantial growth in average home prices, which more than tripled from $96,305 in 2010 to $352,667 in 2022. The relationship between homeownership and home prices is significant, as the rising property values appear to have encouraged more residents to invest in homeownership despite the increasing costs.
Federal interest rates have played a crucial role in shaping homeownership trends in Westside/Sunkist Grove. The period of historically low interest rates from 2010 to 2021, with rates often below 1%, corresponded with the increase in homeownership rates. For example, as interest rates dropped from 1.83% in 2018 to 0.08% in 2021, homeownership increased from 75% to 80%. This aligns with the established trend that lower interest rates generally encourage homeownership due to more affordable financing options.
Renter percentages in the neighborhood have shown an inverse relationship to homeownership rates, decreasing from 27% in 2014 to 22% in 2022. Despite this decline in renter occupancy, average rent prices have steadily increased. The average rent rose from $1,035 in 2013 to $1,308 in 2022, representing a 26% increase over nine years. This trend suggests a tightening rental market, possibly driven by overall population growth in the area and increasing property values.
In 2023, the average home price in Westside/Sunkist Grove reached $390,686, a significant increase from the previous year. This rise occurred despite a sharp increase in federal interest rates to 5.02% in 2023. The upward trend continued into 2024, with average home prices climbing to $421,219, while interest rates further increased to 5.33%. These figures demonstrate the neighborhood's resilient property market, which has maintained growth even in the face of higher borrowing costs.
Looking ahead, predictive models suggest that the robust growth in both home prices and rent prices is likely to continue over the next five years. Average home prices are projected to potentially reach the $500,000 mark by 2029, assuming current market conditions persist. Similarly, average rent prices could approach $1,600 per month within the same timeframe, reflecting the ongoing demand for housing in the area.
In summary, Westside/Sunkist Grove has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The neighborhood has shown resilience to rising interest rates, with home prices continuing to appreciate. The rental market, while shrinking in terms of occupancy, has seen steady increases in average rents. These trends point to a neighborhood that is becoming increasingly desirable and valuable, with potential for continued growth in both the ownership and rental sectors of the real estate market.
