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Average Home Values and Ownership in Zip Code 34758: Resilient Market Amid Population Growth
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 34758, located in Poinciana, Florida, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 34758 has shown a fluctuating trend, with an overall increase in recent years. In 2013, the homeownership rate was 72%, which decreased to 62% by 2016. However, there has been a substantial recovery since then, with the rate reaching 78% in 2022. This upward trend in homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $107,329, which has more than tripled to $325,735 by 2022. This significant appreciation in home values may have encouraged more residents to invest in homeownership, despite the rising prices.
The relationship between federal interest rates and homeownership rates in this zip code is notable. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates actually declined. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates in the area started to increase. This counterintuitive trend suggests that local factors, such as job market conditions or demographic shifts, may have played a more significant role in homeownership decisions than national interest rates during this period.
Renter percentages in zip code 34758 have shown an inverse relationship to homeownership rates, as expected. The renter population peaked at 34% in 2016, coinciding with the lowest homeownership rate. Since then, the renter percentage has decreased to 22% in 2022. Interestingly, average rent prices have continued to rise despite the decreasing renter population. In 2013, the average rent was $1,252, which increased to $1,390 by 2022, representing an 11% increase over this period. This trend suggests a strong rental market, possibly driven by overall population growth in the area, which increased from 34,846 in 2013 to 45,304 in 2022.
Looking at the most recent data for 2023 and 2024, we see that average home prices in zip code 34758 have continued to rise, albeit at a slower pace. The average home price in 2023 was $333,355, increasing slightly to $334,896 in 2024. This represents a modest 0.46% increase, indicating a potential cooling of the rapid price growth seen in previous years. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homebuying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 34758 will continue to appreciate, but at a more moderate pace compared to the rapid growth seen in recent years. The average home price could potentially reach around $370,000 to $400,000 by 2029. Average rent prices are also expected to continue their upward trajectory, potentially reaching $1,600 to $1,700 per month in the next five years, assuming consistent economic conditions and population growth.
In summary, zip code 34758 has experienced a remarkable recovery in homeownership rates, rising from a low of 62% in 2016 to 78% in 2022. This trend has occurred alongside substantial increases in average home prices, which have more than tripled since 2013. The rental market has remained strong despite a decreasing renter population, with average rents steadily increasing. Recent data suggests a potential moderation in home price growth, which could impact future homeownership trends in the area. These dynamics reflect a complex interplay of local market forces, population growth, and broader economic factors shaping the housing landscape in this Florida community.
