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Rising Home Values and Shifting Ownership in Boynton Beach's Zip Code 33426: A Decade of Change
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 33426, located in Boynton Beach, Florida, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in the balance between owners and renters, alongside fluctuations in property values and rental costs.
The homeownership rate in zip code 33426 has shown a general decline from 2013 to 2019, followed by a slight recovery. In 2013, 68% of housing units were owner-occupied, but this figure dropped to 61% by 2019. However, there has been a modest rebound in recent years, with homeownership reaching 65% in 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $120,223, which steadily increased to $217,291 by 2019. As home prices rose, the percentage of homeowners decreased, suggesting that higher prices may have made homeownership less accessible for some residents.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates declined from 68% to 65%. However, as interest rates began to rise more significantly from 2016 onwards, reaching 2.16% in 2019, homeownership rates continued to decrease, reaching a low of 61% in 2019. This suggests that while low interest rates generally encourage homeownership, other factors such as rising home prices may have had a stronger influence in this area.
Renter percentages in zip code 33426 have shown an inverse relationship to homeownership rates, increasing from 31% in 2013 to 38% in 2019, before slightly decreasing to 35% in 2022. Average rent prices have generally increased during this period, rising from $1,490 in 2013 to $1,608 in 2022. The population of the zip code has also grown from 20,011 in 2013 to 23,021 in 2022, which may have contributed to the increased demand for rental properties and subsequently higher rent prices.
In 2023 and 2024, average home prices in zip code 33426 continued to rise significantly. The average home price reached $346,687 in 2023 and further increased to $356,145 in 2024. This represents a substantial 46.7% increase from 2022 to 2024. Concurrently, federal interest rates have also risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 33426 may continue to rise over the next five years, albeit potentially at a slower rate due to the high interest rates. Average rent prices are also likely to increase, driven by population growth and the potential shift towards renting if high home prices and interest rates persist. However, if interest rates begin to decrease, it could stimulate homebuying activity and potentially slow the growth of rental demand.
In summary, zip code 33426 has experienced a shift towards renting, with homeownership rates declining and then slightly recovering in recent years. Average home prices have shown consistent growth, particularly accelerating in 2023 and 2024. Rent prices have also increased, albeit more moderately. The interplay between these factors, along with population growth and changing interest rates, will continue to shape the housing market in this area in the coming years.
