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Average Home Values and Ownership in Zip Code 32901: A Decade of Resilience in Melbourne, 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 32901, located in Melbourne, Florida, has experienced significant changes in its housing market over the past decade. This area 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 32901 has shown a slight decline over the years. In 2013, the area had a 50% homeownership rate, which decreased to 48% by 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $97,716, which rose dramatically to $279,903 by 2022, representing a 186% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable around 47-50%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate showed slight fluctuations, settling at 49% in 2019. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately translate to increased homeownership, possibly due to economic uncertainties during the COVID-19 pandemic.
Renter percentages in zip code 32901 have generally increased, from 50% in 2013 to 52% in 2022. This trend aligns with the rise in average rent prices, which increased from $935 in 2013 to $1,149 in 2022, a 23% increase. The population growth from 24,767 in 2013 to 28,359 in 2022 likely contributed to the increased demand for rentals, pushing both renter percentages and average rent prices upward.
Looking at the most recent data, the average home price in zip code 32901 reached $288,034 in 2023 and further increased to $293,583 in 2024. This continued upward trend occurs despite the significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates might typically slow down home price growth, but the persistent increase suggests strong demand in this area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 32901 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $340,000 to $360,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,400 to $1,500 per month by 2029, driven by population growth and the ongoing shift towards renting.
In summary, zip code 32901 has experienced a slight shift towards renting, with homeownership rates decreasing marginally. Average home prices have seen substantial growth, potentially making homeownership more challenging for some residents. Rent prices have also increased, though not as dramatically as home prices. The area's population growth and economic factors have contributed to these trends, and we expect these patterns to continue in the coming years, albeit potentially at a more moderate pace due to higher interest rates.
