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Average Home Values and Ownership in Zip Code 33401: West Palm Beach's Changing Real Estate Landscape
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 33401, located in West Palm Beach, Florida, has experienced significant changes in its housing market over the past decade. This vibrant area, known for its proximity to the Intracoastal Waterway and downtown amenities, has seen notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 33401 has fluctuated over the years, with a general downward trend. In 2013, the homeownership rate was 39%, which remained relatively stable until 2020 when it dropped to 36%. By 2022, it had stabilized at 36%. During this same period, average home prices in the area saw a substantial increase. In 2013, the average home price was $152,111, which rose steadily to $252,278 by 2020, representing a 66% increase over seven years. This trend continued, with average home prices reaching $395,153 in 2022, a remarkable 160% increase from 2013.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2020, interest rates remained relatively low, ranging from 0.11% to 0.38%. During this period, homeownership rates remained fairly stable, fluctuating between 36% and 39%. However, as interest rates began to rise more significantly in 2022 to 1.68%, the homeownership rate remained at 36%, suggesting that other factors, such as rapidly increasing home prices, may have had a more substantial impact on homeownership than interest rates alone.
Renter percentages in zip code 33401 have shown an upward trend, increasing from 61% in 2013 to 64% in 2022. This rise in renters coincides with an increase in average rent prices. In 2013, the average rent was $1,208, which grew to $1,349 by 2020, a 12% increase. By 2022, the average rent had further increased to $1,392, representing a 15% rise from 2013. The population of the zip code also grew during this period, from 25,636 in 2013 to 32,658 in 2022, potentially contributing to the increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 33401 continued to evolve. The average home price in 2023 was $428,885, a further increase from 2022. In 2024, it reached $435,537, showing continued growth in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and mortgage affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 33401 may continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the ongoing demand for housing in this desirable area. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, zip code 33401 has experienced a significant increase in average home prices and a modest rise in average rent prices over the past decade. The area has seen a slight shift towards renting, with homeownership rates declining slightly. The combination of rising property values, increasing population, and fluctuating interest rates has shaped a dynamic housing market in this West Palm Beach neighborhood, setting the stage for continued evolution in the coming years.
