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Rising Home Values and Shifting Ownership in Jacksonville's 32256 Zip Code: 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
Jacksonville's zip code 32256 has experienced significant demographic and real estate changes over the past decade. This area, located in the southeastern part of the city, has seen a notable shift in ownership and rental patterns, along with substantial fluctuations in average home and rent prices.
The homeownership rate in zip code 32256 has shown a gradual decline over the years. In 2013, the area had a homeownership rate of 42%, which decreased to 39% by 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $179,052, which rose dramatically to $363,924 by 2022, representing a 103% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents in the area.
Federal interest rates have played a significant role in shaping homeownership trends. In 2013, when interest rates were at a low 0.11%, the homeownership rate was at its highest recorded level of 42%. As interest rates began to rise, reaching 1.68% in 2022, the homeownership rate declined to 39%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Conversely, the percentage of renters in zip code 32256 has increased from 54% in 2013 to 61% in 2022. This growth in the renter population corresponds with a rise in average rent prices. The average rent increased from $1,183 in 2013 to $1,464 in 2022, a 24% increase. The growing renter population, coupled with rising rent prices, indicates a strong demand for rental properties in the area. This trend is further supported by the significant population growth, from 42,009 in 2013 to 58,640 in 2022, a 40% increase that likely contributed to the heightened demand for rental properties.
In 2023 and 2024, the real estate market in zip code 32256 showed signs of stabilization. The average home price in 2023 was $368,948, a slight increase from 2022. However, in 2024, there was a marginal decrease to $368,518. This leveling off of prices coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates likely contributed to the cooling of home price growth in the area.
Looking ahead, predictive models suggest a potential stabilization or slight decrease in average home prices over the next five years, given the current high interest rate environment. However, average rent prices are expected to continue their upward trajectory, albeit at a more moderate pace, driven by the area's consistent population growth and the increasing preference for renting.
In summary, zip code 32256 has undergone significant changes, characterized by declining homeownership rates, rapidly increasing home prices, and a growing renter population with rising rents. The recent stabilization in home prices, coupled with high interest rates, suggests a potential shift in the local real estate market dynamics. These trends reflect the area's evolving demographics and economic conditions, pointing to a dynamic and changing urban landscape in this part of Jacksonville.
