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Average Home Values and Ownership Trends in Zip Code 34990: Palm City's Real Estate Transformation
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 34990, located in Palm City, Florida, has experienced significant changes in its housing market over the past decade. This area has seen a steady increase in homeownership rates, coupled with substantial growth in average home prices and average rent costs.
The homeownership rate in zip code 34990 has shown a consistent upward trend, rising from 84% in 2014 to 89% in 2022. This increase in homeownership coincides with a remarkable surge in average home prices. In 2014, the average home price was $282,974, which more than doubled to $617,031 by 2022, representing a 118% increase over eight years. This strong correlation suggests that despite rising prices, residents in this area have maintained a strong preference for homeownership.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were relatively low between 2014 and 2016 (0.09% to 0.4%), the homeownership rate remained stable at 84%. As interest rates began to rise in 2017 (1%), there was a slight increase in homeownership to 85%, possibly due to residents securing mortgages before further rate increases.
The renter population in zip code 34990 has decreased from 15% in 2014 to 11% in 2022. Despite this decline, average rent prices have risen significantly. In 2014, the average rent was $1,417, which increased to $1,929 by 2022, a 36% increase over eight years. This trend suggests that while fewer people are renting, those who do are facing higher costs, possibly due to limited rental inventory or increased demand for high-quality rental properties.
In 2023 and 2024, the housing market in zip code 34990 continued its upward trajectory. The average home price reached $648,222 in 2023 and further increased to $657,984 in 2024. This represents a 5% increase from 2022 to 2023 and a 1.5% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in zip code 34990 will continue to rise, albeit at a slower pace. Forecasts indicate an average annual increase of 3-4% over the next five years, potentially reaching around $780,000 by 2029. Average rent prices are expected to follow a similar trend, with projected annual increases of 2-3%, potentially reaching about $2,200 per month by 2029.
In summary, zip code 34990 has demonstrated a robust housing market characterized by increasing homeownership rates and substantial growth in both average home prices and average rent costs. Despite rising prices and recent increases in interest rates, the area maintains a strong preference for homeownership. The continued upward trajectory of housing costs, coupled with high ownership rates, suggests a sustained demand for housing in this desirable Florida location.
