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Zip Code 23434: Rising Home Values and Ownership in Suffolk, Virginia
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 23434, located in Suffolk, Virginia, has demonstrated significant changes in its housing market over the past decade. This area has experienced a general trend of increasing homeownership rates alongside rising average home prices, while also witnessing fluctuations in its rental market.
The homeownership rate in zip code 23434 has seen a notable increase from 61% in 2016 to 68% in 2022. This upward trend in homeownership coincided with a significant rise in average home prices, which grew from $196,540 in 2016 to $290,949 in 2022, representing a 48% increase over six years. This correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased local income levels.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2016 to 2022 saw relatively low interest rates, ranging from 0.4% to 1.68%, which likely contributed to the increasing homeownership rates in zip code 23434. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. This is evident in the data, as the homeownership rate continued to climb even as average home prices increased.
Conversely, the percentage of renters in zip code 23434 decreased from 38% in 2016 to 32% in 2022. Despite this decrease in the renter population, average rent prices showed an overall upward trend, rising from $1,205 in 2016 to $1,163 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,223. This trend suggests that while fewer people were renting, those who did rent faced higher costs, possibly due to increased demand for quality rental properties or improvements in the rental stock.
In 2023 and 2024, the housing market in zip code 23434 continued to evolve. Average home prices reached $305,805 in 2023 and further increased to $316,898 in 2024, showing a continued upward trajectory. However, this growth occurred alongside a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 23434 are likely to continue their upward trend over the next five years, albeit potentially at a slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting the area's growing population and economic development. However, the rate of increase may be tempered by the potential for new housing developments and changes in local economic conditions.
In summary, zip code 23434 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The interplay between federal interest rates, homeownership rates, and property prices has been evident, with low interest rates supporting the growth in homeownership despite rising prices. The rental market, while shrinking in terms of percentage of occupants, has seen generally increasing average rents. As the area moves forward, it will be crucial to monitor how the recent spike in interest rates affects these established trends in both the ownership and rental markets.
