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Average Home Values and Ownership in Coastal ZIP Code 32625: Cedar Key's Maritime Charm
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
ZIP code 32625, located in Cedar Key, Florida, is a unique coastal area known for its small-town charm and rich maritime history. This analysis explores the trends in homeownership, average home prices, and average rent prices in this picturesque location.
The homeownership rate in ZIP code 32625 has shown some fluctuation over the years, with a general trend towards stability. In 2013, the area had a high homeownership rate of 83%, which gradually decreased to 71% by 2019. However, there has been a recent uptick, with homeownership reaching 79% in 2022. Average home prices have seen a significant increase over the same period, rising from $168,252 in 2013 to $340,231 in 2022, representing a substantial 102% increase.
The relationship between federal interest rates and homeownership rates in this area doesn't always follow the expected pattern. For instance, despite historically low interest rates between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership actually decreased from 83% to 74%. However, as interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership rates stabilized around 71-75%. This suggests that other local factors may have a more significant influence on homeownership in this particular ZIP code than national interest rate trends.
Renter percentages and average rent prices in ZIP code 32625 have shown interesting trends. The percentage of renters increased from 17% in 2013 to a peak of 29% in 2019, before decreasing to 21% in 2022. Average rent prices have been volatile, dropping from $492 in 2013 to a low of $342 in 2016, then sharply increasing to $888 in 2019, and reaching $863 in 2022. This represents a 152% increase in average rent from the 2016 low to 2022, despite a slight decrease in the renter population percentage.
Looking at the most recent data, average home prices in ZIP code 32625 continued to rise, reaching $351,190 in 2023 and $368,390 in 2024. This represents a 3.2% increase from 2022 to 2023 and a further 4.9% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels since 2007.
Based on the historical trends and current market conditions, we can forecast the following 5-year trends for average home and rent prices in ZIP code 32625: 1. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $425,000 to $450,000 by 2029. 2. Average rent prices, which have shown volatility, may stabilize and increase moderately. Assuming continued demand for rental properties, we might see average rents in the range of $950 to $1,100 by 2029.
In summary, ZIP code 32625 has experienced significant growth in both average home prices and average rent prices over the past decade. The area has maintained a relatively high homeownership rate despite these increases, suggesting strong local demand for property ownership. The recent sharp rise in interest rates may impact future home buying activity, potentially leading to a more balanced market between owners and renters in the coming years.
