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Home Values and Ownership in Zip Code 33138: A Decade of Growth in Miami's Urban Core
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 33138, located in Miami, Florida, is a vibrant urban area covering 4.38 square miles. This neighborhood has experienced significant shifts in homeownership rates and property values over the past decade. The area has seen a gradual increase in homeownership, coupled with substantial growth in average home prices and average rent costs.
The homeownership rate in zip code 33138 has shown a steady upward trend, increasing from 44% in 2013 to 49% in 2022. This 5% rise in homeownership coincided with a dramatic increase in average home prices. In 2013, the average home price was $267,444, which more than doubled to $728,282 by 2022, representing a 172% increase over nine years. This correlation suggests that despite rising home values, more residents were able to enter the housing market, possibly due to factors such as increased local economic opportunities or favorable financing conditions.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership in the area remained relatively stable around 42-45%. As interest rates began to rise more sharply from 2017 (1.00%) to 2019 (2.16%), homeownership percentages held steady at 45%. Interestingly, even as interest rates dropped again in 2020 and 2021 (to 0.38% and 0.08% respectively), homeownership continued to climb, reaching 48% in 2021 and 49% in 2022, despite a significant interest rate hike to 1.68% in 2022.
The rental market in zip code 33138 has shown its own distinct trends. The percentage of renters decreased slightly from 54% in 2013 to 51% in 2022. However, this small decrease in the renter population was accompanied by a substantial increase in average rent prices. In 2013, the average rent was $1,106, which rose to $1,609 by 2022, marking a 45.5% increase. This trend suggests that while fewer residents were renting, those who did were facing significantly higher costs. The population fluctuations, peaking at 30,454 in 2015 and settling at 28,604 in 2022, may have influenced these rental market dynamics.
As of 2024, the average home price in zip code 33138 has reached $815,166, representing a 11.9% increase from 2022. This continued appreciation occurs despite the federal interest rate climbing to 5.33% in 2024, up from 5.02% in 2023. These figures indicate a resilient housing market that continues to see price growth even in the face of higher borrowing costs.
Looking ahead, predictive models suggest that the upward trajectory of both average home prices and average rent prices in zip code 33138 is likely to continue over the next five years, albeit potentially at a more moderate pace. Average home prices could potentially reach or exceed $900,000 by 2029, while average rent prices might surpass $1,800 per month.
In summary, zip code 33138 has demonstrated a robust and dynamic real estate market over the past decade. The area has seen a consistent increase in homeownership rates, coupled with substantial growth in both average home prices and average rent costs. Despite fluctuations in population and rising interest rates, the local housing market has shown remarkable resilience and continued appreciation. These trends point to a neighborhood that remains attractive to both homeowners and investors, with the potential for further growth in the coming years.
