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Average Home Values and Ownership in Zip Code 32798: Zellwood's Resilient 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
Zellwood, located in zip code 32798 in Florida, is a small community that has experienced significant changes in homeownership rates and housing prices over the past decade. This area has consistently maintained a high percentage of owner-occupied homes, with a notable increase in average home prices and average rent costs.
The homeownership rate in Zellwood has shown a strong upward trend, increasing from 89% in 2013 to 95% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $96,480, which has grown dramatically to $277,848 by 2022, representing a 188% increase over this period. This trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained stable at around 89%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased to 92%, possibly due to buyers rushing to purchase homes before rates climbed further. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a further increase in homeownership to 93%, likely due to more affordable financing options.
The percentage of renters in Zellwood has decreased from 11% in 2013 to 5% in 2022. Despite this decline, average rent prices have shown a significant upward trend. In 2013, the average rent was $1,222, which increased to $1,562 by 2022, representing a 28% rise. This increase in rent prices, coupled with the decreasing renter population, suggests a tightening rental market with potentially higher-quality or more desirable rental properties commanding premium prices.
As of 2024, the average home price in Zellwood has reached $305,963, continuing the upward trend observed in previous years. This represents a 10% increase from the 2022 average price of $277,848. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the early 2020s. This increase in interest rates may impact future homeownership trends and home price growth.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit potentially at a more moderate pace due to the higher interest rate environment. Average home prices could potentially reach around $350,000 to $375,000 by 2029. Average rent prices are also expected to continue their upward trajectory, potentially reaching $1,800 to $2,000 per month in the same timeframe.
In summary, Zellwood has experienced a significant increase in homeownership rates, rising from 89% to 95% between 2013 and 2022. This trend has been accompanied by a substantial growth in average home prices, which have nearly tripled during the same period. The rental market has seen a decrease in the percentage of renters, but average rent prices have continued to climb. These trends, coupled with fluctuating interest rates, paint a picture of a dynamic and evolving housing market in this Florida community.
