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Average Home Values and Ownership in Zip Code 33404: A Decade of Coastal Florida Housing Trends
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 33404, located in Riviera Beach, Florida, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in the balance between owners and renters, coupled with substantial fluctuations in housing costs. The ownership percentage in zip code 33404 has shown a slight downward trend from 2013 to 2022. In 2013, the homeownership rate stood at 58%, but by 2022, it had decreased to 55%. This decline coincided with a remarkable increase in average home prices. In 2013, the average home price was $143,073, which more than doubled to $396,409 by 2022. This substantial rise in home prices may have contributed to the decrease in homeownership rates, as higher prices can make it more challenging for potential buyers to enter the market.
Federal interest rates have played a significant role in shaping homeownership trends in this zip code. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at 56%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 33404 has shown a corresponding increase, rising from 41% in 2013 to 45% in 2022. This shift towards renting has been accompanied by a steady increase in average rent prices. In 2013, the average rent was $1,101, which rose to $1,226 by 2022, representing an 11.4% increase over nine years. The growing population in the area, which increased from 26,616 in 2013 to 31,053 in 2022, may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the housing market in zip code 33404 continued to evolve. The average home price reached $415,939 in 2023 and further increased to $420,243 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 33404 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to the higher interest rates. Average rent prices are also expected to increase, driven by population growth and the shift towards renting. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply catches up with demand.
In summary, zip code 33404 has experienced a gradual shift from homeownership to renting, accompanied by substantial increases in both average home prices and rent costs. The interplay between federal interest rates, population growth, and housing costs has shaped these trends, with higher home prices potentially driving more residents towards renting. As the area continues to evolve, balancing housing affordability with population growth will likely remain a key challenge for the local real estate market.
