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Average Home Values and Ownership in Zip Code 32405: A Decade of Growth in Panama City, Florida
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 32405, located in Panama City, Florida, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has shown a notable shift towards increased homeownership, coupled with substantial growth in average home values.
The ownership percentage in zip code 32405 has steadily increased from 56% in 2013 to 63% in 2022, indicating a growing preference for homeownership. During this same period, average home prices have shown remarkable growth. In 2013, the average home price was $140,782, which increased to $265,687 by 2022, representing an impressive 88.7% increase over nine years. This trend suggests a strong correlation between rising homeownership rates and increasing property values in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.4%, coinciding with a period of stable homeownership rates around 53-54%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a continued increase in homeownership rates, reaching 59% by 2019. This trend persisted even as interest rates dropped again in 2020 and 2021, with homeownership reaching 62% by 2021.
Conversely, the percentage of renters in zip code 32405 has decreased from 44% in 2013 to 37% in 2022. Despite this decline, average rent prices have shown an upward trend. In 2013, the average rent was $1,059, which increased to $1,232 by 2022, representing a 16.3% increase. This suggests that while fewer people are renting, those who do are paying higher prices, possibly due to increased demand for limited rental properties or improvements in the quality of available rentals.
Looking at more recent data, the average home price in zip code 32405 continued to rise, reaching $282,016 in 2023 and further increasing to $289,221 in 2024. This represents a 6.2% increase from 2022 to 2023 and a 2.6% increase from 2023 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and rent prices in zip code 32405. Based on historical data and current economic indicators, average home prices could potentially reach around $340,000 by 2029, while average rent prices might increase to approximately $1,450 per month. These projections assume a continuation of current economic conditions and local market trends.
In summary, zip code 32405 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. Despite higher interest rates in recent years, the area has maintained strong growth in both homeownership rates and average home prices. The rental market, while shrinking in terms of occupancy, has seen steady increases in average rent prices. These trends, combined with recent data and future projections, suggest that zip code 32405 remains an attractive area for both homeowners and real estate investors.
