Loading Content...
Zip Code 23306: Rising Home Values and Shifting Ownership in Belle Haven, Virginia
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 23306, located in Belle Haven, Virginia, has experienced significant changes in homeownership rates and housing prices over the past decade. This small community has seen fluctuations in its population, with notable shifts in ownership percentages and average home and rent prices. The area has undergone a transformation from predominantly owner-occupied housing to a more balanced mix of owners and renters.
The homeownership rate in zip code 23306 has shown a declining trend from 2013 to 2020, followed by a slight recovery. In 2013, 80% of housing units were owner-occupied, but this figure dropped to 55% by 2020. Conversely, average home prices have steadily increased. From 2015 to 2022, average home prices rose from $189,848 to $271,497, representing a 43% increase over seven years. This inverse relationship suggests that rising home prices may have contributed to the decline in homeownership rates, as fewer residents could afford to purchase homes.
Federal interest rates have played a role in homeownership trends in zip code 23306. From 2013 to 2016, when interest rates were historically low (0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 75-80%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates declined more rapidly, reaching 57% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in zip code 23306 has increased from 19% in 2013 to 37% in 2022. Correspondingly, average rent prices have risen dramatically, from $186 in 2013 to $993 in 2022, a 434% increase. This surge in rent prices coincided with population growth, from 967 residents in 2013 to 1,008 in 2022. The sharp increase in rent prices, particularly from 2015 to 2016 when they jumped from $271 to $792, may reflect increased demand for rental properties as homeownership became less attainable.
In 2023 and 2024, average home prices in zip code 23306 continued to rise, reaching $281,926 in 2023 and $285,201 in 2024. This represents a 3.8% increase from 2022 to 2023 and a modest 1.2% increase from 2023 to 2024. Concurrently, federal interest rates have climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates may impact future homeownership trends in the area.
Looking ahead, based on historical trends and current market conditions, average home prices in zip code 23306 are projected to continue rising, albeit at a slower pace. Over the next five years, average home prices could potentially reach around $310,000 to $320,000. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month within the same period, assuming continued demand for rental properties and limited housing supply.
In conclusion, zip code 23306 has experienced a significant shift in its housing landscape over the past decade. The most important discoveries include the decline in homeownership rates from 80% to 63% between 2013 and 2022, coupled with a 43% increase in average home prices during a similar period. The rental market has seen explosive growth, with average rent prices increasing by 434% from 2013 to 2022. These trends, influenced by factors such as population growth and changing interest rates, have reshaped the community's housing dynamics. Moving forward, the area is likely to see continued, though potentially moderated, increases in both home prices and rent, maintaining a more balanced mix of owners and renters compared to its historical composition.
