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Rising Home Values and Ownership Dynamics in Zip Code 32308: A Decade of Change in Tallahassee
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 32308, located in Tallahassee, Florida, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, known for its proximity to Florida State University and the state capital, has seen interesting trends in both the ownership and rental markets.
The homeownership rate in zip code 32308 has shown a slight increase over the years, rising from 51% in 2013 to 52% in 2022. This modest growth coincides with a significant increase in average home prices. In 2013, the average home price was $184,766, which steadily climbed to $311,070 by 2022, representing a substantial 68% increase over nine years. This trend suggests that despite rising home values, the area has maintained its appeal to homebuyers, possibly due to its desirable location and amenities.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership rates remained stable at around 50-51%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership actually increased slightly to 55%, possibly indicating other factors influencing buying decisions in this zip code.
Renter percentages in zip code 32308 have fluctuated inversely to homeownership rates, decreasing slightly from 48% in 2013 to 46% in 2017, before rising back to 48% in 2022. Average rent prices have shown an overall upward trend, increasing from $1,092 in 2013 to $1,076 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,183. These trends suggest a relatively stable rental market, with prices generally keeping pace with inflation and local economic conditions.
In 2023 and 2024, the housing market in zip code 32308 continued its upward trajectory. The average home price reached $324,751 in 2023 and further increased to $337,149 in 2024. This represents a 4.4% year-over-year increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying trends in the area.
Looking ahead, based on historical trends and current market conditions, we can expect the average home prices in zip code 32308 to continue their upward trajectory over the next five years. Assuming a conservative annual growth rate of 4%, average home prices could potentially reach around $410,000 by 2029. Average rent prices, which have shown more volatility, might continue to fluctuate but with an overall upward trend. A modest 2% annual increase could see average rents approach $1,200 by 2029.
In summary, zip code 32308 in Tallahassee has demonstrated resilience in its housing market, with steadily increasing home values and a slight uptick in homeownership rates despite rising prices. The rental market has remained relatively stable, with moderate increases in average rents. The area's continued attractiveness, coupled with broader economic factors, will likely contribute to ongoing growth in both the ownership and rental sectors in the coming years.
