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Home Values and Ownership in Zip Code 32504: A Decade of Growth Near Naval Air Station Pensacola
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 32504, located in Pensacola, Florida, has experienced notable shifts in its housing landscape over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. From 2013 to 2022, the ownership percentage has remained relatively stable, while average home prices have shown a significant upward trend, and average rent prices have experienced moderate growth.
Examining the relationship between homeownership rates and average home prices in zip code 32504 reveals interesting trends. In 2013, the homeownership rate was 59%, with an average home price of $119,572. By 2022, the homeownership rate had slightly increased to 60%, while the average home price had more than doubled to $260,388. This suggests that despite the substantial increase in home values, the area maintained a relatively stable proportion of homeowners.
Federal interest rates have played a role in shaping homeownership trends in zip code 32504. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates fluctuated between 56% and 60%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates remained steady at around 57-59%. Interestingly, even as interest rates dropped significantly in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates stabilized at 60%, suggesting that other factors beyond interest rates were influencing homeownership decisions in this area.
Renter percentages and average rent prices in zip code 32504 have shown some correlation over the years. In 2013, 41% of residents were renters, with an average rent of $1,079. By 2022, the renter percentage had decreased slightly to 40%, while the average rent had increased to $1,160. The highest renter percentage was observed in 2016 at 44%, coinciding with a period of relatively lower average rent at $1,058. Population growth may have influenced these trends, as the zip code's population increased from 22,642 in 2013 to 22,861 in 2022, potentially affecting housing demand and rental market dynamics.
In 2023 and 2024, zip code 32504 continued to see growth in average home prices. The average home price in 2023 was $270,999, representing a 4.1% increase from 2022. In 2024, the average home price further increased to $276,202, a 1.9% rise from the previous year. Notably, federal interest rates also saw significant increases during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 32504 will continue to rise, albeit at a more moderate pace. Based on historical data and current market conditions, we project that average home prices could reach approximately $310,000 to $325,000 by 2029. For average rent prices, we forecast a continued upward trend, potentially reaching $1,350 to $1,450 per month by 2029, assuming steady population growth and economic stability in the area.
In summary, zip code 32504 has demonstrated resilience in maintaining a stable homeownership rate despite significant increases in average home prices. The area has experienced moderate growth in average rent prices, with slight fluctuations in renter percentages. The relationship between federal interest rates and homeownership rates has been complex, suggesting that local factors play a significant role in housing decisions. Looking ahead, we anticipate continued growth in both average home prices and rent prices, though potentially at a more modest rate than seen in recent years. These trends indicate a dynamic housing market in zip code 32504, balancing homeownership opportunities with a robust rental market.
