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Rising Home Values and Stable Ownership in Zip Code 98366: Port Orchard's Resilient Housing Market
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 98366, located in Port Orchard, Washington, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 98366 has shown a general upward trend, increasing from 63% in 2013 to 66% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $206,379, which more than doubled to $491,255 by 2022. This dramatic increase in home values may have incentivized more residents to invest in homeownership, despite the rising costs.
The relationship between federal interest rates and homeownership rates in this zip code is notable. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable around 63-65%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate actually increased to 66%. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in homeownership decisions than interest rates alone.
Renter percentages in zip code 98366 have fluctuated inversely to homeownership rates, decreasing from 37% in 2013 to 34% in 2022. During this period, average rent prices showed a steady increase, rising from $1,226 in 2013 to $1,317 in 2022, representing a 7.4% increase over nine years. The population of the zip code also grew during this time, from 33,293 in 2013 to 37,585 in 2022, which likely contributed to the demand for rental properties and the subsequent increase in average rent prices.
Looking at the most recent data, the average home price in zip code 98366 for 2023 was $474,559, showing a slight decrease from 2022. However, the 2024 average home price has rebounded to $480,750. This recent uptick occurs despite the federal interest rate rising to 5.33% in 2024, which is significantly higher than previous years and might typically discourage home purchases.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 98366 will continue to rise, albeit at a more moderate pace than seen in the early 2020s. The average home price could potentially reach around $550,000 by 2029. Average rent prices are also expected to increase, potentially reaching approximately $1,500 per month in the same timeframe.
In summary, zip code 98366 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The area has seen substantial growth in property values, outpacing increases in rent prices. While federal interest rates have fluctuated, their impact on local homeownership rates appears to be less direct than other factors. The recent stabilization of home prices and continued population growth suggest a maturing market that may continue to favor homeownership, albeit with more moderate price increases in the coming years.
