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Average Home Values and Ownership in Zip Code 34228: Longboat Key's Coastal Property Boom
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
Longboat Key, located in zip code 34228 in Florida, is a picturesque coastal community known for its beautiful beaches and upscale living. This area has experienced significant changes in homeownership rates and property values over the past decade. From 2013 to 2022, the percentage of owner-occupied homes increased from 89% to 94%, while average home prices rose from $544,384 to $1,121,873. During the same period, average rent prices also saw an upward trend, increasing from $2,116 to $2,477 per month.
The relationship between homeownership rates and average home prices in zip code 34228 shows a strong positive correlation. As the percentage of owner-occupied homes increased from 89% in 2013 to 95% in 2020, average home prices also rose steadily from $544,384 to $662,701. This trend continued into 2022, with homeownership remaining high at 94% and average home prices reaching $1,121,873, representing a remarkable 105.8% increase from 2013 to 2022.
Federal interest rates have played a significant role in homeownership trends in this area. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increase in homeownership from 89% to 95% during this time, as more affordable financing options became available to potential buyers. The slight dip in homeownership to 94% in 2021 and 2022 coincided with a rise in interest rates to 1.68% in 2022, potentially making home purchases less accessible for some buyers.
Renter percentages in zip code 34228 have shown a consistent decline from 11% in 2013 to 6% in 2022. Despite this decrease in the renter population, average rent prices have generally increased. From 2013 to 2022, average rent prices rose from $2,116 to $2,477, a 17% increase. This upward trend in rent prices, despite a shrinking renter population, could be attributed to the overall increase in property values and the desirability of the area. The population growth from 6,657 in 2013 to 7,479 in 2022 may have also contributed to maintaining demand for rental properties despite the declining percentage of renters.
Looking at the most recent data, average home prices in zip code 34228 reached $1,130,564 in 2023, showing a slight increase from 2022. However, in 2024, there was a minor decline to $1,118,691. This slight downturn coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be dampening home price growth and potentially affecting affordability for prospective buyers.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 34228 to continue their overall upward trajectory, albeit at a more moderate pace due to the current high interest rate environment. Average home prices are projected to reach approximately $1,300,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $2,900 per month in the next five years, driven by the area's desirability and limited rental inventory.
In summary, zip code 34228 has experienced a significant increase in homeownership rates and property values over the past decade. The area has seen a strong correlation between rising homeownership rates and increasing average home prices, influenced by historically low interest rates until recent years. Despite a declining renter population, average rent prices have continued to rise, reflecting the area's attractiveness. The recent uptick in interest rates may moderate future growth, but the overall trend for both home prices and rents is expected to remain positive in this desirable coastal community.
