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Zip Code 32189: Rising Home Values and Shifting Ownership in Welaka, Florida
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 32189, located in Welaka, Florida, has experienced significant demographic and real estate changes over the past decade. This area, known for its proximity to the St. Johns River, has seen a notable shift in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 32189 has shown a consistent decline from 2013 to 2022. In 2013, 90% of residents were homeowners, but by 2022, this figure had dropped to 61%. This substantial decrease of 29 percentage points over nine years indicates a significant shift in the local housing market. Concurrently, average home prices in the area have experienced a steady increase. In 2013, the average home price was $73,810, rising to $190,633 by 2022, representing a remarkable 158% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), homeownership rates continued to decline. This trend suggests that factors beyond interest rates, such as local economic conditions or changing demographics, may have played a more significant role in shaping homeownership patterns in this area.
As homeownership decreased, the percentage of renters in zip code 32189 naturally increased. The renter population grew from 10% in 2013 to 39% in 2022, nearly quadrupling over nine years. Interestingly, average rent prices have shown fluctuations rather than a consistent upward trend. In 2013, the average rent was $886, peaking at $914 in 2018, before decreasing to $684 in 2022. This 25% decrease in average rent from 2018 to 2022 occurred despite the growing renter population, potentially indicating an oversupply of rental properties or economic pressures affecting the local rental market.
In 2023 and 2024, the real estate market in zip code 32189 continued to evolve. The average home price reached $199,061 in 2023 and further increased to $206,736 in 2024, showing a sustained upward trend. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and property values in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 32189 may continue to rise, albeit at a potentially slower rate due to higher interest rates. A conservative estimate suggests average home prices could reach around $240,000 to $260,000 by 2029. Average rent prices, which have been more volatile, might stabilize or see modest increases, potentially reaching $750 to $800 per month by 2029, assuming local economic conditions improve and demand for rentals remains strong.
In summary, zip code 32189 has witnessed a significant shift from a predominantly homeowner community to one with a growing renter population. Despite this trend, average home prices have shown robust growth, while rent prices have fluctuated. The area's real estate market appears to be in a state of transition, influenced by broader economic factors and changing local demographics. The coming years will likely see continued evolution in this dynamic housing market.
