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Average Home Values and Ownership in Zip Code 34480: Ocala's Resilient Housing Market
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 34480, located in Ocala, Florida, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing population density and fluctuating homeownership rates, accompanied by notable shifts in the housing market.
The homeownership rate in zip code 34480 has shown some variability over the years. In 2013, the homeownership rate was 77%, and it remained relatively stable until 2017 when it began to decline. By 2020, the rate had dropped to 73%. However, there was a significant increase in 2021, with homeownership rising to 78%, before settling back to 77% in 2022. Interestingly, these changes in homeownership rates coincided with fluctuations in average home prices. The average home price in 2013 was $122,346, and it steadily increased to $198,655 by 2020. This period of rising home prices corresponds with the slight decline in homeownership rates. The sharp increase in homeownership in 2021 occurred despite a substantial jump in average home prices to $237,546, suggesting other factors may have influenced this trend.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained stable at around 77-78%. As interest rates began to rise from 2016 onwards, reaching 2.16% by 2019, there was a gradual decline in homeownership rates to 73%. The sudden drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with the significant increase in homeownership to 78% in 2021, supporting the notion that lower interest rates can encourage homeownership.
Renter percentages and average rent prices in zip code 34480 have also shown interesting trends. The percentage of renters increased from 23% in 2013 to 27% in 2020, before decreasing to 21% in 2021 and then rising again to 23% in 2022. Average rent prices have generally increased over this period, starting at $892 in 2013, reaching a peak of $976 in 2021, before slightly decreasing to $892 in 2022. The increase in renter percentages from 2013 to 2020 coincided with a general upward trend in rent prices, suggesting growing demand for rental properties during this period.
In 2023 and 2024, the housing market in zip code 34480 continued to evolve. The average home price in 2023 was $312,471, showing a significant increase from previous years. In 2024, the average home price further increased to $316,386. These increases occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, indicating strong demand in the local housing market despite higher borrowing costs.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 34480 are likely to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may also see moderate increases, driven by population growth and demand for housing in the area. However, the rate of increase for both home prices and rents may be tempered by economic factors and housing market dynamics.
In summary, zip code 34480 has experienced significant changes in its housing market over the past decade. The area has seen fluctuating homeownership rates, generally increasing average home prices, and variable rent prices. The interplay between interest rates, home prices, and homeownership rates highlights the complex dynamics of the local real estate market. As the area continues to grow, these trends will likely continue to evolve, shaping the future of housing in this Ocala zip code.
