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Average Home Values and Ownership Trends in Tampa's Zip Code 33605: A Decade of Significant Shifts
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 33605, located in Tampa, Florida, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a gradual shift towards a renter-majority population, coupled with substantial increases in average home prices and average rent costs.
The homeownership rate in zip code 33605 has shown a general downward trend from 2013 to 2022. In 2013, 39% of housing units were owner-occupied. This percentage peaked at 41% in 2016 before declining to 37% in 2022. Concurrently, average home prices have risen dramatically. In 2013, the average home price was $45,262, which increased to $256,235 by 2022, representing a staggering 466% increase over nine years. This inverse relationship suggests that rising home prices may have contributed to decreasing homeownership rates, as housing became less affordable for potential buyers.
Federal interest rates have played a role in homeownership trends in this zip code. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership rates increased slightly from 39% to 41%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 37%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 33605 has shown an overall upward trend, increasing from 61% in 2013 to 63% in 2022. This trend coincides with rising average rent prices. In 2013, the average rent was $929, which increased to $1,025 by 2022, an increase of 10.3% over nine years. The population in this zip code has fluctuated, peaking at 18,074 in 2015 before declining to 16,097 in 2022. Despite the population decrease, the continued rise in rent prices suggests a strong demand for rental properties in this area.
In 2023, the average home price in zip code 33605 reached $263,339, and in 2024, it further increased to $274,430. This represents a continued upward trend in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homeownership rates and housing affordability in the coming years.
Looking ahead, predictive models suggest that average home prices in zip code 33605 are likely to continue their upward trajectory over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 33605 has experienced a shift towards a renter-majority population, with homeownership rates declining as average home prices have skyrocketed. Rising federal interest rates have likely contributed to this trend. Meanwhile, average rent prices have steadily increased, albeit at a slower rate than home prices. The area appears poised for continued growth in both home values and rental costs, potentially further impacting the balance between homeowners and renters in the coming years.
