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Average Home Values and Ownership in Zip Code 34470: A Decade of Change in Ocala, 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 34470, located in Ocala, Florida, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its equestrian heritage and natural springs, has seen a gradual shift in its real estate landscape, with notable trends in both ownership percentages and average home and rent prices. The homeownership rate in zip code 34470 has shown a slight decline over the years. In 2013, the area had a 63% homeownership rate, which gradually decreased to 57% by 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $77,461, which more than doubled to $216,202 by 2022. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%. During this period, homeownership rates in zip code 34470 remained relatively stable, fluctuating between 59% and 63%. However, as interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), we observed a corresponding decrease in homeownership rates, dropping to 58% by 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 34470 has seen a gradual increase, rising from 37% in 2013 to 43% in 2022. This trend correlates with the rise in average rent prices, which increased from $772 in 2013 to $934 in 2022. The population of the zip code also grew during this period, from 19,131 in 2013 to 21,398 in 2022, potentially contributing to increased demand for rental properties and subsequently higher rent prices.
In 2023 and 2024, the real estate market in zip code 34470 continued to evolve. The average home price in 2023 reached $230,661, representing a 6.7% increase from 2022. In 2024, the average home price further increased to $235,130, indicating a continued upward trend in property values. Notably, federal interest rates also saw significant increases during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 34470 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the ongoing 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 34470 has experienced a gradual decrease in homeownership rates coupled with significant increases in both average home prices and rent prices over the past decade. The interplay between federal interest rates, population growth, and housing affordability has shaped these trends. As the area continues to evolve, it will be crucial to monitor how these factors influence the local real estate market and community dynamics in the coming years.
