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Average Home Values and Ownership in Zip Code 33177: A Decade of Change in South Miami Heights
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
South Miami Heights, located in zip code 33177 in Florida, has experienced notable shifts in its housing market over the past decade. This area has seen significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 33177 has shown a gradual decline from 2013 to 2022. In 2013, 80% of residents were homeowners, but by 2019, this figure had dropped to 71%. However, there was a slight recovery in recent years, with homeownership reaching 74% in 2022. This trend correlates inversely with the average home prices in the area. From 2013 to 2022, average home prices rose substantially, from $151,628 to $468,488, representing a 209% increase over this period. This sharp rise in home prices likely contributed to the initial decline in homeownership rates, as affordability became a growing concern for potential buyers.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained relatively low, hovering around 0.1% to 0.4%. During this period, homeownership rates in zip code 33177 remained relatively stable, only decreasing slightly from 80% to 76%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we see a corresponding drop in homeownership rates to 71%. The sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincides with a slight recovery in homeownership rates to 74% by 2022, despite rising home prices.
The renter population in zip code 33177 has shown an inverse relationship to homeownership trends. The percentage of renters increased from 19% in 2013 to a peak of 29% in 2019, before slightly decreasing to 26% in 2022. Average rent prices have generally trended upward, rising from $1,517 in 2013 to $1,806 in 2022, an increase of 19%. This increase in rent prices, while significant, was not as dramatic as the rise in home prices during the same period. The population of the zip code has remained relatively stable, fluctuating between 55,932 and 58,587 residents from 2013 to 2022, suggesting that changes in renter percentages were more influenced by housing market dynamics than by significant population shifts.
In 2023 and 2024, the housing market in zip code 33177 continued its upward trajectory. The average home price reached $512,983 in 2023 and further increased to $550,980 in 2024. This represents a 17.6% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels seen since 2007. These high interest rates, combined with elevated home prices, are likely to impact homeownership trends and affordability in the area.
Looking ahead, based on current trends and economic indicators, we can forecast potential scenarios for the next five years. Average home prices in zip code 33177 may continue to appreciate, albeit at a potentially slower rate due to high interest rates. A conservative estimate might see average home prices reaching around $650,000 to $700,000 by 2029. Average rent prices could also continue their upward trend, potentially reaching $2,000 to $2,200 per month by 2029, assuming a similar growth rate to recent years.
In summary, zip code 33177 has experienced a significant increase in both average home prices and average rent prices over the past decade, with a corresponding fluctuation in homeownership rates. The interplay between federal interest rates, housing affordability, and local market conditions has shaped these trends. As we move forward, the area is likely to continue seeing appreciation in both home values and rent prices, though the rate of increase may be moderated by economic factors such as interest rates and overall market conditions.
