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Rising Home Values and Ownership Rates in Zip Code 33971: A Decade of Change in Lehigh Acres, Florida
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 33971, located in Lehigh Acres, Florida, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a remarkable shift towards increased homeownership and rising average home prices, coupled with fluctuations in average rent prices.
The trend of homeownership in zip code 33971 shows a steady increase from 2013 to 2022. In 2013, the homeownership rate was 61%, and it consistently rose to reach 78% by 2022. This substantial increase of 17 percentage points indicates a strong shift towards homeownership in the area. Concurrently, average home prices have shown a dramatic upward trend. In 2013, the average home price was $88,125, and by 2022, it had more than tripled to $297,085. This represents a staggering 237% increase in average home values over a nine-year period.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates increased steadily from 61% to 73%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's interesting to note that even as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), homeownership rates continued to climb, reaching 78% in 2022.
As homeownership rates increased, the percentage of renters in zip code 33971 naturally decreased. In 2013, 39% of residents were renters, but by 2022, this had dropped to 22%. Despite this decline in the renter population, average rent prices showed an overall upward trend. In 2013, the average rent was $1,067, and it increased to $1,230 by 2022, representing a 15.3% increase. However, this growth was not consistent year-over-year, with some fluctuations observed. For instance, average rent peaked at $1,375 in 2021 before decreasing slightly in 2022.
Looking at the most recent data, average home prices in zip code 33971 continued to rise in 2023 and 2024, reaching $315,852 and $328,318 respectively. This represents a 6.3% increase from 2022 to 2023 and a further 3.9% increase from 2023 to 2024. Interestingly, these price increases occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, suggesting strong underlying demand in the local housing market.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 33971 to continue their upward trajectory, albeit potentially at a slower rate due to higher interest rates. Average home prices could potentially reach around $380,000 to $400,000 by 2029. Average rent prices are also likely to increase, possibly reaching $1,400 to $1,500 per month in the same timeframe, assuming the current trends continue.
In summary, zip code 33971 has experienced a significant shift towards homeownership, with rates increasing from 61% to 78% between 2013 and 2022. This trend has been accompanied by a substantial rise in average home prices, which more than tripled during the same period. Despite a decreasing renter population, average rent prices have also shown an overall increase. The area has demonstrated resilience in its housing market, with home prices continuing to rise even in the face of increasing interest rates in recent years.
