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Zip Code 31419: Rising Home Values and Ownership Trends in Savannah's Dynamic Real Estate 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 31419, located in Savannah, Georgia, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a fluctuating trend in ownership percentages, while both home prices and rent have generally increased.
The homeownership rate in zip code 31419 has shown some variability from 2013 to 2022. In 2013, the ownership rate was 56%, which declined to 48% by 2017. However, there was a rebound in subsequent years, with the rate returning to 56% in 2022. Interestingly, this trend in homeownership appears to have an inverse relationship with average home prices. As average home prices increased from $141,937 in 2013 to $261,226 in 2022, a rise of 84%, the ownership rate initially decreased before recovering. This suggests that rising home prices may have initially deterred some potential buyers, but other factors eventually encouraged homeownership despite the higher prices.
Federal interest rates have played a role in shaping homeownership trends in this zip code. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1-0.4%. During this time, homeownership rates fluctuated but remained relatively stable. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates dipped slightly. However, when rates dropped again in 2020 and 2021 to near-zero levels, homeownership began to increase, reaching 56% by 2022 despite a sharp rise in interest rates to 1.68% that year.
Regarding rental trends, the percentage of renters in zip code 31419 increased from 44% in 2013 to a peak of 52% in 2017, before declining back to 44% in 2022. Average rent prices showed a general upward trend during this period, rising from $1,093 in 2013 to $1,113 in 2022, an increase of about 1.8%. It's worth noting that despite the overall increase, there were some fluctuations, with the highest average rent of $1,173 recorded in 2021. The population growth in the zip code, from 51,616 in 2013 to 57,233 in 2022, may have contributed to the pressure on rental prices.
In 2023 and 2024, average home prices in zip code 31419 continued their upward trajectory. The average home price reached $288,139 in 2023 and further increased to $305,681 in 2024, representing a 10.3% and 6.1% year-over-year increase respectively. This rise occurred despite the Federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, suggesting strong demand for housing in this area even in a high-interest-rate environment.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 31419 may continue to rise over the next five years, albeit potentially at a slower rate due to high interest rates. We might expect average home prices to reach around $350,000 to $375,000 by 2029. Average rent prices, which have shown more modest growth, could potentially increase to around $1,200 to $1,250 per month in the same timeframe.
In summary, zip code 31419 has demonstrated resilience in its housing market. Despite fluctuations in homeownership rates and significant increases in average home prices, the area has maintained a relatively balanced mix of owners and renters. The continued rise in home prices, even in the face of higher interest rates, suggests strong demand for housing in this Savannah neighborhood. However, this trend may also present affordability challenges for some residents in the coming years.
