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Average Home Values and Ownership in Zip Code 32686: A Rural Florida Town's Housing Market Transformation
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 32686, located in Reddick, Florida, presents an intriguing case study of housing market dynamics. This area has experienced significant fluctuations in homeownership rates and property values over the past decade. The ownership percentage has shown a general decline, while average home prices have demonstrated a robust upward trend. Average rent prices have fluctuated, but with a generally increasing trajectory.
The homeownership rate in zip code 32686 has seen a notable decline from 80% in 2013 to 63% in 2022. Concurrently, average home prices have shown a substantial increase. In 2013, the average home price was $123,100, which rose steadily to reach $333,760 by 2022, representing a remarkable 171% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained relatively stable at around 76-80%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), we observe a gradual decline in homeownership rates, dropping to 77% by 2019. The sharp decrease in interest rates in 2020 (0.38%) and 2021 (0.08%) did not halt the decline in homeownership, which fell to 67% in these years, possibly due to other economic factors at play.
The renter population in zip code 32686 has grown from 20% in 2013 to 37% in 2022, mirroring the decline in homeownership. Average rent prices have shown volatility but with an overall upward trend. In 2013, the average rent was $918, which peaked at $1,042 in 2016 before experiencing a decline to $669 in 2019. However, rent prices rebounded, reaching $883 by 2022. This trend suggests that despite fluctuations, the rental market has generally become more expensive, potentially reflecting increased demand as homeownership rates declined.
Moving to more recent data, the average home price in zip code 32686 continued its upward trajectory, reaching $355,365 in 2023 and further increasing to $372,233 in 2024. This represents a 6.5% increase from 2022 to 2023 and a 4.7% increase from 2023 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and property values.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 32686 may continue to rise over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,100 per month within the same timeframe. However, the rate of increase may moderate due to higher interest rates and potential market stabilization.
In summary, zip code 32686 has experienced a significant shift in its housing landscape over the past decade. The area has seen a substantial increase in average home prices coupled with a decline in homeownership rates. The rental market has expanded, with generally rising average rent prices. These trends, influenced by factors such as federal interest rates and local economic conditions, point towards a changing housing market that may present both challenges and opportunities for residents and investors in the coming years.
