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Average Home Values and Ownership in Zip Code 32164: A Decade of Change in Palm Coast's Coastal Housing Market
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
Palm Coast, located in zip code 32164 in Florida, has experienced significant changes in its housing market over the past decade. This coastal community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 32164 has shown a gradual decline from 2013 to 2020, followed by a slight recovery. In 2013, the homeownership rate stood at 77%, but it decreased to 68% by 2020. However, there was a modest rebound to 72% by 2022. This trend correlates interestingly with the average home prices in the area. From 2013 to 2022, average home prices in the zip code increased substantially, rising from $135,504 to $349,397, representing a 158% increase over this period.
The relationship between federal interest rates and homeownership rates in zip code 32164 follows a generally expected pattern. As interest rates remained low from 2013 to 2016 (below 0.5%), homeownership rates declined slightly from 77% to 74%. However, as interest rates began to rise from 2017 to 2019 (reaching 2.16% in 2019), homeownership rates dropped more significantly to 70%. The subsequent drop in interest rates in 2020 and 2021 (to 0.08% in 2021) coincided with a slight recovery in homeownership rates to 71% in 2021 and 72% in 2022.
Renter percentages in zip code 32164 have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The percentage of renters rose from 23% in 2013 to 32% in 2020, before slightly decreasing to 28% in 2022. Average rent prices have generally increased over this period, rising from $1,184 in 2013 to $1,400 in 2022, a 18.2% increase. This trend in rent prices has been influenced by the growing population, which increased from 43,268 in 2013 to 48,550 in 2022, creating more demand for rental properties.
In 2023 and 2024, the housing market in zip code 32164 has shown some interesting developments. The average home price in 2023 was $347,725, slightly lower than the 2022 figure. In 2024, the average home price further decreased to $341,333. This slight downturn in home prices coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 32164 may continue to experience moderate growth over the next five years, albeit at a slower pace than seen in recent years due to higher interest rates. Average rent prices are likely to continue their upward trajectory, driven by population growth and the potential shift towards renting if home buying becomes less affordable due to higher interest rates.
In summary, zip code 32164 has experienced a complex interplay of factors affecting its housing market. The area has seen a general trend of increasing home and rent prices, with fluctuations in homeownership rates influenced by changing economic conditions and interest rates. The recent uptick in interest rates may lead to a period of stabilization in the housing market, with potential opportunities for both buyers and renters in this growing Florida community.
