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Home Values and Ownership Trends in Palm Bay's 32905 Zip Code: A Decade of Resilience
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 32905, located in Palm Bay, Florida, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a fluctuating trend in ownership percentages, while average home prices have shown a consistent upward trajectory, and average rent prices have increased moderately.
The homeownership rate in zip code 32905 has fluctuated over the years, with a notable decline followed by a recent recovery. In 2013, the ownership rate stood at 60%. It then decreased to 51% in 2017, before rebounding to 60% in 2022. Concurrently, average home prices in the area have shown a steady increase. In 2013, the average home price was $68,536, which rose to $127,687 in 2017, and further increased to $239,868 in 2022. This represents a substantial 250% increase in average home prices over a nine-year period.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. In 2013, when the federal interest rate was 0.11%, the homeownership rate was 60%. As interest rates gradually increased to 1.83% in 2018, the homeownership rate dropped to 52%. However, despite a spike in interest rates to 1.68% in 2022, the homeownership rate rebounded to 60%, suggesting that other factors beyond interest rates influenced homeownership decisions in this area.
Renter percentages and average rent prices have also shown notable trends. In 2013, the renter percentage was 40%, with an average rent of $983. By 2017, the renter percentage increased to 49%, while the average rent rose to $1,030. In 2022, the renter percentage decreased to 40%, but the average rent increased to $1,017. This data suggests that while the proportion of renters fluctuated, average rent prices generally trended upward, albeit at a slower pace compared to home prices.
Looking at the most recent data, the average home price in zip code 32905 reached $251,345 in 2023 and further increased to $254,015 in 2024. This represents a continued upward trend in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 32905 to continue their upward trajectory, potentially reaching around $300,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,300 per month within the same timeframe. However, these predictions are subject to various economic factors and local market conditions.
In summary, zip code 32905 has experienced a recovery in homeownership rates in recent years, despite significant increases in average home prices. The area has shown resilience in maintaining a balance between owners and renters, even as property values have risen substantially. The interplay between interest rates, home prices, and rental markets suggests a dynamic and evolving real estate landscape in this Palm Bay zip code.
