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Average Home Values and Ownership: Zip Code 33461's Shifting Housing Landscape in Palm Springs, Florida
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 33461, located in Palm Springs, Florida, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in ownership and rental patterns, accompanied by substantial fluctuations in average home prices and rent costs.
The homeownership rate in zip code 33461 has shown a gradual decline from 2013 to 2022. In 2013, 51% of residents owned their homes, but by 2022, this figure had decreased to 48%. Conversely, the percentage of renters increased from 48% in 2013 to 52% in 2022. During this same period, average home prices in the area experienced a dramatic rise. In 2013, the average home price was $72,763, but by 2022, it had soared to $275,076, representing a remarkable 278% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 33461. From 2013 to 2016, interest rates remained historically low, hovering between 0.09% and 0.4%. During this period, homeownership rates remained relatively stable at around 49-51%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline, dropping to 48% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in zip code 33461 has also seen significant changes. As the percentage of renters increased from 48% in 2013 to 52% in 2022, average rent prices rose steadily. In 2013, the average rent was $1,103, but by 2022, it had increased to $1,325, a 20% rise over nine years. This increase in rent prices coincided with a growing population, which rose from 40,316 in 2013 to 47,566 in 2022, potentially contributing to increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 33461 continued to evolve. The average home price in 2023 reached $292,873, a 6.5% increase from 2022. In 2024, it further increased to $304,907, showing a 4.1% growth from the previous year. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels seen in over a decade.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 33461 may continue to rise, albeit at a potentially slower rate due to higher interest rates. We might see average home prices reaching around $350,000 to $375,000 by 2029. Average rent prices could also continue their upward trajectory, potentially reaching $1,500 to $1,600 per month by 2029, driven by increasing demand and rising property values.
In summary, zip code 33461 has undergone significant changes in its housing market dynamics. The area has seen a shift towards a higher percentage of renters, accompanied by substantial increases in both average home prices and rent costs. The influence of federal interest rates on homeownership trends is evident, with recent rate hikes potentially impacting future homeownership rates. As the population continues to grow and housing prices rise, the rental market is likely to remain strong, with both homeowners and renters facing an increasingly expensive housing market in the coming years.
