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Rising Home Values and Ownership Rates in Zip Code 32137: Palm Coast's Real Estate Dynamics
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 32137, located in Palm Coast, Florida, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a notable increase in population and a shift in the balance between owners and renters, along with fluctuations in average home and rent prices.
The homeownership rate in zip code 32137 has shown an upward trend, increasing from 79% in 2015 to 86% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2015, the average home price was $210,350, which steadily climbed to $416,901 by 2022, representing a 98% increase over seven years. This trend suggests a strong correlation between rising home values and increasing homeownership rates, possibly indicating growing confidence in the local real estate market.
Federal interest rates have played a significant role in homeownership trends. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. This period of low interest rates corresponded with the increase in homeownership rates from 79% to 84%. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. The dramatic rise in interest rates to 5.02% in 2023 and 5.33% in 2024 may impact future homeownership trends in the area.
The renter percentage in zip code 32137 has decreased from 21% in 2015 to 14% in 2022, inversely mirroring the rise in homeownership. Despite this decrease, average rent prices have shown an overall upward trend. In 2015, the average rent was $1,285, which increased to $1,389 by 2022, a 8% rise. This increase in rent prices, coupled with a decreasing renter population, suggests a tightening rental market, possibly due to limited rental inventory as more properties transition to owner-occupied status.
In 2023 and 2024, the average home prices in zip code 32137 showed a slight decline, with values of $413,376 and $406,156 respectively. This represents a 0.8% decrease from 2022 to 2023 and a further 1.7% decrease from 2023 to 2024. This cooling in home prices coincides with the significant increase in interest rates to 5.02% in 2023 and 5.33% in 2024, which may be moderating demand in the housing market.
Looking ahead, predictive models suggest that average home prices in zip code 32137 may continue to experience modest declines or stabilization over the next five years, influenced by the higher interest rate environment. Average rent prices, however, are projected to continue their upward trajectory, albeit at a more moderate pace, as the rental market adjusts to changes in supply and demand dynamics.
In summary, zip code 32137 has seen a significant shift towards homeownership, accompanied by substantial increases in average home prices from 2015 to 2022. The recent cooling in the housing market, coinciding with rising interest rates, suggests a potential stabilization phase. Meanwhile, the rental market has experienced steady price growth despite a decreasing renter population, indicating a complex interplay between housing supply, demand, and broader economic factors in this Palm Coast area.
