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Rising Home Values and Ownership in Zip Code 33786: Belleair Beach's Coastal Real Estate Boom
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
Belleair Beach, located in zip code 33786 in Florida, is a small coastal community known for its beautiful beaches and upscale residential areas. Over the past decade, this area has experienced significant fluctuations in homeownership rates and property values, with a general trend towards increased owner occupancy and rising average home prices.
The homeownership rate in Belleair Beach has shown a notable upward trend, particularly in recent years. In 2013, the owner-occupied rate was 88%, which increased to 93% by 2022. This substantial rise in homeownership coincided with a dramatic increase in average home prices. In 2013, the average home price was $418,078, and by 2022, it had more than doubled to $983,192. This strong positive correlation between homeownership rates and average home prices suggests that as property values increased, more residents opted to buy rather than rent.
Federal interest rates have played a significant role in shaping homeownership trends in Belleair Beach. During periods of low interest rates, such as from 2013 to 2016 when rates remained below 0.5%, homeownership rates remained stable at around 85-88%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates surprisingly continued to climb, reaching 93% in 2022. This suggests that other factors, such as the desirability of the area and increasing property values, may have outweighed the impact of rising interest rates on homeownership decisions.
The rental market in Belleair Beach has experienced an inverse relationship with homeownership trends. As the percentage of renters decreased from 15% in 2015 to 7% in 2022, average rent prices showed a general upward trend. In 2013, the median rent was $2,062, which increased to $2,331 by 2022. This rise in rent prices, despite a decreasing renter population, could be attributed to the overall increase in property values and the limited supply of rental properties in the area.
Looking at the most recent data, average home prices in Belleair Beach continued to rise in 2023 and 2024, reaching $998,179 and $1,009,908 respectively. This represents a slight slowdown in the rate of appreciation compared to previous years. Interestingly, federal interest rates also saw a significant increase during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, albeit at a slower pace.
Based on the historical trends and current market conditions, we can project future trends for Belleair Beach. Over the next five years, average home prices are likely to continue their upward trajectory, but at a more moderate pace due to the higher interest rate environment. We might expect average home prices to reach around $1.2 million by 2029. Average rent prices are also expected to increase, potentially reaching $2,800 per month by 2029, driven by the limited supply of rental properties and the overall increase in property values.
In summary, Belleair Beach (zip code 33786) has experienced a significant increase in homeownership rates and average home prices over the past decade. Despite rising interest rates, the area's desirability and increasing property values have continued to drive homeownership. The rental market, while shrinking, has seen steady increases in average rent prices. Looking forward, we can expect continued growth in both home prices and rents, albeit at a more moderate pace due to the current high-interest rate environment.
