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Average Home Values and Ownership in Zip Code 32817: A Decade of Resilience Amidst Rising Prices
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
University, located in zip code 32817 in Florida, is a unique area characterized by its dynamic real estate market and changing demographics. Over the past decade, this area has experienced significant shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 32817 has shown fluctuations over the years, with a general downward trend followed by a recent uptick. In 2013, the homeownership rate stood at 52%. It declined to 47% in 2016 and 2017 before rising again to 52% in 2022. Concurrently, average home prices have seen a substantial increase. In 2013, the average home price was $142,663, which rose steadily to $369,412 by 2022, representing a 159% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have initially priced some potential buyers out of the market, leading to a decrease in homeownership. However, the recent increase in homeownership despite higher prices could indicate a strengthening local economy or changing demographics.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates actually decreased from 52% to 47%. This counterintuitive trend might be explained by other local factors overriding the typical effect of low interest rates. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized and then increased slightly to 52%, possibly indicating a "buy now before rates go higher" mentality among potential homeowners.
Renter percentages in zip code 32817 have shown an inverse relationship to homeownership rates, as expected. The percentage of renters increased from 45% in 2013 to a peak of 51% in 2016, before decreasing to 48% in 2022. Average rent prices have steadily increased over this period, rising from $1,264 in 2013 to $1,357 in 2022, a 7.4% increase. This relatively modest increase in rent prices compared to the dramatic rise in home prices might explain the sustained high percentage of renters in the area. The population growth from 36,529 in 2013 to 41,172 in 2022 likely contributed to the demand for rental properties, helping to maintain high occupancy rates despite rising rents.
In 2023 and 2024, the real estate market in zip code 32817 continued its upward trajectory. The average home price reached $391,205 in 2023 and further increased to $407,218 in 2024, representing a 10.2% increase over these two years. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These high interest rates would typically be expected to cool the housing market, but the continued price appreciation suggests strong underlying demand in this area.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 32817 are likely to continue their upward trend over the next five years, albeit at a potentially slower rate. Home prices could reach around $450,000 by 2029, while average rent prices might approach $1,600 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 32817 has experienced significant changes in its real estate landscape over the past decade. The area has seen substantial appreciation in home values, a recent rebound in homeownership rates, and steady increases in rent prices. The resilience of the local housing market, even in the face of rising interest rates, suggests a strong underlying demand for both owned and rented properties in this area. As the community continues to evolve, these trends will likely shape the future of housing in this dynamic Florida zip code.
