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Zip Code 32176: Rising Home Values and High Ownership Rates in Ormond Beach's Coastal Community
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 32176, located in Ormond Beach, Florida, showcases an intriguing real estate landscape with notable trends in homeownership and property values. This coastal area has experienced significant fluctuations in its housing market over the past decade, reflecting broader economic shifts and local dynamics.
The homeownership rate in zip code 32176 has remained relatively stable, hovering around 76-77% between 2013 and 2020. However, there was a notable increase in recent years, reaching 79% in 2022. This trend coincides with substantial growth in average home prices. In 2013, the average home price was $159,972, which steadily increased to $254,960 by 2020, representing a 59.4% increase over seven years. The most dramatic surge occurred between 2020 and 2022, with average home prices jumping from $254,960 to $382,660, a remarkable 50.1% increase in just two years.
Federal interest rates have played a significant role in shaping homeownership trends in this area. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period of low-cost borrowing likely contributed to the steady increase in home prices and stable homeownership rates. The slight dip in homeownership to 74% in 2018 coincided with a rise in interest rates to 1.83%, suggesting a temporary impact on buying decisions.
Renter percentages in zip code 32176 have fluctuated inversely to homeownership rates, ranging from 21% to 26% between 2013 and 2022. Average rent prices have shown an overall upward trend, increasing from $1,193 in 2013 to $1,314 in 2022, a 10.1% rise. Interestingly, there was a spike in average rent to $1,387 in 2020, possibly due to the pandemic's impact on the housing market. The population in this zip code has seen some volatility, peaking at 14,434 in 2010 and settling at 13,224 in 2022, which may have influenced rental demand and pricing.
In 2023 and 2024, the housing market in zip code 32176 continued to evolve. The average home price reached $395,260 in 2023, a 3.3% increase from 2022. However, 2024 saw a slight decrease to $393,382, marking the first decline in over a decade. This shift coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and further to 5.33% in 2024, potentially cooling the housing market.
Looking ahead, based on historical trends and recent market behavior, we can project potential scenarios for the next five years. Average home prices may experience a period of stabilization or slight decline, given the current high interest rates and the recent price plateau. If interest rates remain elevated, we might see prices adjusting downward by 5-10% over the next two to three years before potentially rebounding. Rent prices, which have shown more stability, are likely to continue a modest upward trajectory, possibly increasing by 2-3% annually, barring any significant economic shifts.
In summary, zip code 32176 has demonstrated a robust housing market with strong homeownership rates and substantial property value appreciation over the past decade. The recent slowdown in price growth and the increase in interest rates suggest a potential market correction. The interplay between homeownership rates, property values, and economic factors will continue to shape this area's real estate landscape in the coming years.
