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Average Home Values and Ownership in Zip Code 34498: Yankeetown's Changing Coastal 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 34498, located in Yankeetown, Florida, is a small coastal community that has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates and substantial increases in average home and rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 34498 has shown a general decline from 2013 to 2022. In 2013, the homeownership rate stood at 79%, but by 2022, it had decreased to 70%. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $125,523, which more than doubled to $296,938 by 2022. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which coincided with relatively stable homeownership rates of around 80%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates showed a gradual decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 34498 has shown an overall increase from 19% in 2013 to 28% in 2022. This rise in renters corresponds with an increase in average rent prices. In 2013, the average rent was $725, which grew to $785 by 2022, representing an 8.3% increase. The population of the area also grew during this period, from 113 in 2013 to 161 in 2022, which likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the average home prices in zip code 34498 continued to rise, reaching $308,304 in 2023 and $312,756 in 2024. This represents a 3.8% increase from 2022 to 2023, and a further 1.4% increase from 2023 to 2024. Simultaneously, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 34498 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We estimate average home prices could reach approximately $340,000 to $360,000 by 2029. Average rent prices are also expected to increase, potentially reaching $850 to $900 per month in the same timeframe, driven by population growth and the overall increase in property values.
In summary, zip code 34498 has experienced a shift towards more renters and fewer homeowners over the past decade, largely driven by rapidly increasing home prices and fluctuating interest rates. The area has seen significant property value appreciation, with average home prices more than doubling from 2013 to 2024. These trends, combined with population growth, have also led to increases in average rent prices. As the community continues to evolve, these housing market dynamics will likely play a crucial role in shaping the area's demographic and economic landscape in the coming years.
