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Zip Code 32174: Rising Home Values and Strong Ownership in Ormond Beach's Coastal 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 32174, located in Ormond Beach, Florida, has experienced significant changes in homeownership rates and housing prices over the past decade. This coastal area, known for its beautiful beaches and historical landmarks, has seen a dynamic real estate market with notable trends in both ownership and rental sectors.
The homeownership rate in zip code 32174 has shown remarkable stability over the years, with a slight increase in recent times. In 2013, the homeownership rate was 79%, and it remained relatively constant until 2020 when it rose to 81%. By 2022, it further increased to 82%, indicating a growing preference for homeownership in the area. This trend coincides with a substantial rise in average home prices. In 2013, the average home price was $168,691, which steadily increased to $267,513 by 2020, representing a 58.6% increase over seven years. The most dramatic rise occurred between 2020 and 2022, with average home prices surging from $267,513 to $381,915, a staggering 42.8% increase in just two years.
The relationship between federal interest rates and homeownership rates in zip code 32174 follows a well-established trend. During periods of lower interest rates, such as from 2013 to 2016 when rates were below 0.5%, the homeownership rate remained stable at around 77-78%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, the homeownership rate showed resilience, maintaining at 78%. Interestingly, despite a significant interest rate drop to 0.38% in 2020, homeownership increased to 81%, suggesting that other factors, such as the desire for more space during the pandemic, may have influenced buying decisions.
The rental market in zip code 32174 has also seen notable changes. The percentage of renters decreased from 23% in 2019 to 18% in 2022, reflecting the increase in homeownership. Average rent prices, however, have shown an upward trend. In 2013, the average rent was $1,240, which increased to $1,387 by 2017, a 11.9% rise. After a slight dip to $1,301 in 2020, possibly due to pandemic-related factors, the average rent rebounded to $1,311 in 2022. This overall increase in rent prices, despite a decreasing renter population, suggests a tightening rental market with potentially higher demand for available rental units.
In 2023 and 2024, the housing market in zip code 32174 continued its upward trajectory. The average home price reached $398,218 in 2023 and further increased to $400,234 in 2024, representing a 4.3% rise from 2022 to 2023 and a modest 0.5% increase from 2023 to 2024. This slowing rate of increase might be attributed to the significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market.
Looking ahead, predictive models suggest a continued but moderate increase in both average home prices and rent prices over the next five years. Home prices are expected to grow at a slower rate compared to the rapid increases seen in recent years, potentially reaching around $450,000 by 2029. Average rent prices are projected to follow a similar trend, possibly reaching $1,500 by 2029. These projections take into account the current high interest rates, which may temper rapid price growth but are unlikely to reverse the overall upward trend in this desirable coastal area.
In summary, zip code 32174 has demonstrated a strong preference for homeownership, with rates increasing to 82% by 2022. This trend has been accompanied by significant growth in average home prices, particularly between 2020 and 2022. The rental market, while shrinking in terms of the percentage of renters, has seen steady increases in average rent prices. The recent slowdown in price growth, coupled with high interest rates, suggests a potential stabilization of the market, but the area's desirability is likely to maintain upward pressure on both home prices and rents in the coming years.
