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Homeownership and Average Home Values in North Key Largo, Zip Code 33037: A Decade of Growth in a Coastal Paradise
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
North Key Largo, located in zip code 33037 in Florida, is a coastal community known for its scenic beauty and marine environment. Over the past decade, this area has experienced notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in North Key Largo has shown a general upward trend, increasing from 70% in 2013 to 78% in 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2016, the average home price was $556,719, which steadily climbed to reach $1,061,967 by 2022, representing a 90.8% increase over six years. This substantial appreciation in property values likely contributed to the growing attractiveness of homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which likely encouraged home buying. The homeownership rate increased from 70% in 2013 to 75% in 2020, aligning with these favorable borrowing conditions. As interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), the homeownership rate continued to increase slightly to 78%, suggesting other factors such as the desirability of the location may have offset the impact of higher borrowing costs.
Renter percentages in North Key Largo have correspondingly decreased from 30% in 2013 to 22% in 2022. Despite this decline in the renter population, average rent prices have shown volatility. The average rent increased from $1,485 in 2013 to $1,523 in 2015, then decreased to $1,310 in 2019 before rising sharply to $1,745 in 2022. This 33% increase in average rent from 2019 to 2022 occurred despite a slight decrease in the renter population, potentially indicating a shortage of rental properties or an increase in high-end rental offerings.
In 2023 and 2024, the average home prices in North Key Largo continued their upward trajectory, reaching $1,096,591 in 2023 and $1,132,181 in 2024. This represents a 6.6% increase from 2022 to 2024, despite the federal interest rate rising to 5.33% in 2024. The continued appreciation in home values, even in the face of higher borrowing costs, suggests strong demand for properties in this area.
Looking ahead, predictive models forecast a continuation of the upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 4-5% annually, potentially reaching around $1,400,000 by 2029. Average rent prices are expected to rise at a similar rate, possibly reaching $2,100 per month by 2029. These projections assume continued economic stability and sustained demand for properties in North Key Largo.
In summary, North Key Largo (zip code 33037) has experienced a significant increase in homeownership rates and property values over the past decade. The area has shown resilience in the face of rising interest rates, with home prices continuing to appreciate. The rental market, while shrinking in terms of percentage, has seen substantial increases in average rent prices. These trends reflect the desirability of the area and suggest a robust real estate market that is likely to continue growing in the coming years.
